Research on exchange rate sensitivity of exports based on state space model

The paper researched the exchange rate sensitivity of exports based on the ARDL-ECM and state space model. The long-run relationship was obtained by using bounds test, and the dynamic relationship was obtained by estimating state space model. The empirical results show the following conclusions: 1) The exchange rate sensitivity of exports is variational in a long-run period. 2) The reform of exchange rate in 2005 increased the effects of exchange rate on exports and the financial crisis in 2008 decreased the effects. 3) The currency appreciation improves the exports volume, and exports are not sensitive to the exchange rate volatility.