Research On Foreign Direct Investment Theory And Empirical Analysis Based On Exchange Rate

International direct investment rises in the seventies of the 19th century, after going through for more than one century. The capital flow have exerted a far-reaching influence to enterprise's international competitiveness all around the world, industrial structure adjustment, international balance between revenue and expenditure and sustainable development of one country's economy, the international direct investment becomes economist's concerned question. FDI has played a great role to the development and global economic integration of the international economy as the tie of the economy of countries all over the world. In the open economy, as determining domestic and international goods and relative price of the factor of production, the exchange rate is determine the flow direction and scale of FDI, become the important influence factor of influencing the foreign direct investment. The opinions are the devaluation or underestimating of the currency helps to attract the foreign direct investment and unfavorable to the foreign direct investment, the appreciation of and the currency helps the foreign direct investment and unfavorable to attracting the foreign direct investment, change of exchange rate can influence mode that make the investment also, such as adopting the mode of individual proprietorship or jointly owned mode. The exchange rate change has influenced the direct investment through Export, Cost of investment and fund-raising cost in foreigncountries, comparing wealth effect, and capitalized rate. In addition, this text analyses by way of positive research on U.S.A., & Japan's exchange rate change and direct investment flow into and flow out, in order to verify the forth views of this text, and has made efforts to research on exchange rate of RMB of our country, expect to absorb the foreign capitals and foreign direct investment to be helpful to our country.