Impact on Foreign Direct Investment of RMB Real Effective Exchange Rate-Empirical Analysis Based on Quarterly Data of China

摘要

This paper using co-integration theory and error correction model to check the influence of RMB real effective exchange rate on Chinese FDI. The results show that in the long term, there is a co-integration relationship between these two variables and the RMB appreciation will promote the growth of FDI; in the short term, RMB real effective exchange rate doesn't have a significant effect on FDI. In this regard, this paper proposes the corresponding policy recommendations.