Empirical evaluation of exchange rate fluctuations on high-tech products export in Zhejiang Province

Abstract

To evaluate the effects of exchange rate on high-tech products export, this paper applied the gravity model to a quantitative study of the impact of the exchange rate on the export of high-tech products in Zhejiang province, considering the nominal exchange rate and the real exchange rate fluctuations respectively. Based on the analysis of the data from 1998 to 2007, the results shows that the exchange rate fluctuations is positively correlated with high-tech products exports in Zhejiang Province, other conditions remain unchanged and the effects remain weak. Meanwhile, the test results also shows that the region's economic scale, national income and geographic distance also have a major influence on the export of high-tech products in Zhejiang Province.