The Impact of Changes in the RMB Exchange Rate on the Export Competitiveness of China's Textiles and Clothing Industry

In recent years, the export volume of China's textiles and clothing industry and its international market share have increased year by year. Under such circumstances, studying the export status of China's textiles and clothing is conducive to further promoting the development of its textiles and clothing industry. This paper establishes a model based on the annual Revealed Comparative Advantage Index of China's textiles and clothing industry from 2000 to 2021, the nominal exchange rate of RMB against the US dollar, and the annual data of GDP. This paper then tests its stability, and continues to carry out the co-integration test and Granger-Causality under the condition that the data is stable in the same order to judge the relationship between the change of RMB exchange rate and the Revealed Comparative Advantage Index of China's textiles and clothing. Research shows that for every 1% appreciation of the nominal exchange rate of the RMB against the US dollar, the Revealed Comparative Advantage Index of China's textiles and clothing industry will increase by 0.0009647%. The rise of the RMB exchange rate has a certain effect on the RCA of China's textiles and clothing industry, and the results of Granger-Causality also show that the RMB exchange rate is the reason for RCA in China's textiles and clothing industry.