Research Article | OPEN ACCESS
The Impact of RMB Exchange Rate on Agricultural Food Prices in Emerging Market
Li Zhou
School of Management, Minzu University of China, Beijing, 100081, China
Advance Journal of Food Science and Technology 2015 7:505-510
Received: December 26, 2014 | Accepted: February 6, 2015 | Published: June 20, 2015
Abstract
With the development of economic globalization, the economic ties between countries in the world more and more closely, prices and the exchange rate are the core economic variables in an open economy. In this study, we make a statistical analysis of RMB real effective exchange rate and agricultural food prices data from the year of 1990 to 2014. From the empirical analysis, the result shows that RMB real effective exchange rate will effect on agricultural food prices. LnREER at lag 1 period increased one percentage can drive LnAFP growth by 0.015%; LnREER at lag 2 period increased one percentage can drive LnAFP growth by 0.187%, so the effect of RMB real effective exchange rate on agricultural food prices is obvious. Based on granger causality test, it shows that LnREER is the granger reason to LnAFP, which means RMB real effective exchange rate is the reason to agricultural food prices increase. On this basis, we have put forward relevant policy suggestions.
Keywords:
Agricultural food prices, economic globalization, exchange rate, food processing industry,
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Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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ISSN (Online): 2042-4876
ISSN (Print): 2042-4868 |
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