The Impact Of Exchange Rate On The Chinese Software Industry

China make a reform on the formation' of the exchange rate in 2005,the new currency of RMB is based on the market supply and demand,reference to a basket of currencies,It's a floating exchange rate system.This new exchange rate system makes the RMB exchange rate more flexible.Currency changes in has impact on foreign investment in China's software industry.Foreign direct investment development a large number funds in China's software industry at the early stage.FDI make China's rapid development of software industry for economic development has made important contributions to the development of China's software industry cannot be ignored an important force.The exchange rate changes will inevitably affect the development of China's software industry.This paper first introduces the characteristics and current situation of China's software industry,and analyzes the ways that the exchange rate influence on China's software industry.Secondly,use the monthly effective exchange rate of RMB from 2014 to 2016,the foreign direct investment attracted by the software industry,and do the empirical analysis by simple econometric model for the effective exchange rate of RMB and the absorption of foreign direct investment in China's software industry.The results show that in these two years,the appreciation of the RMB caused China's software industry to attract foreign direct investment to reduce the number.The total income of China's software industry increased when the software industry attracted more foreign direct investment;The total income of the software industry in China is reduced when the investment amount is reduced.Finally,give the explanation about why China's software industry effect by exchange rate,and give policy recommendations.