Rmb Exchange Rate Of Foreign Direct Investment In Regional And Industry Influence

The RMB exchange rate makes great efforts on China's economic development. On one side, the RMB exchange rate impacts the import & export, which contributes greatly to our GDP growth. On the other side, the RMB exchange rate affects China's FDI, which is also of great importance to our economic development. During the 30 years of introducing FDI inflows, China has attracted great amount of investments from countries all over the world. What's more, the regional and industrial distributions of the foreign direct investment have changed a lot in this period. All these changes contribute to China's regional and industrial economic growth.The research about the effects of RMB exchange rate on FDI seems more important in the 21st century. After the global financial crisis in 2008, the world economy entered recession. However, China's initial recovery has led to great RMB appreciation pressure. Therefore, in order to help solve the economic restructuring problem and reduce the RMB appreciation pressure, the essay has made researches on the effects of RMB exchange rate on the FDI of different regions and industries.Through the theoretical and empirical analysis, the essay focuses on how the RMB real effective exchange rate affects the FDI absorbed by 29 provinces,7 districts and 14 industries. The content is divided into six parts.The first part is introduction, which briefly describes the theoretical and realistic meaning of the topic and summarizes the essay's structure and main content. This part also points out the essay's originality and shortcomings.Chapter 1 summarizes the research results of the foreign and domestic scholars and makes comments on the research results.Chapter 2 uses existing theories to analyze how the exchange rate appreciation and depreciation stimulate the FDI inflows respectively.Chapter 3 describes RMB exchange rate's developing trend and analyze several exchange rate indices. This part also introduces the phases, origin features, distributing features as well as the industrial characteristics of China's FDI.Chapter 4 uses the gravity model to make empirical analysis and the results show that RMB exchange rate can significantly affects the FDI absorbed by Tianjin, Shanxi, Inner Mongolia, Heilongjiang, Zhejiang, Jiangxi, Shandong, Guangdong, Guangxi, Hainan and Guizhou provinces. Besides, the FDI absorbed by the northeast, north, east and middle China are greatly impacted by RMB exchange rate. So do the FDI of mining, manufacturing, wholesale & retail and catering, finance and real estate industries.Chapter 5 summarizes the whole content, points out the conclusions and makes some suggestions for better economic development.