Research About The Impact Of Foreign Dirrct Investment On The Foreign Exchange Reserves

From the1980s, under the background of the international division of labor, weundertake international industrial transfer, a large number of foreign investment flowinto our country. After the1990s, Under the guidance of reform and opening up andthe investment policy, a large number of foreign direct investment flow into China,and become the main form of China’s utilization of foreign investment. Inflow offoreign capital, while promoting the development of China’s trade and industrialrestructuring, and made a rapid growth of China’s foreign exchange reserve.Underthis background, research the impact of the FDI on China’s foreign exchange reserves,strengthen the management of foreign direct investment and foreign exchangereserves, has a very important theoretical and practical significance.First, from the foreign direct investment, foreign exchange reserves, FDI affectthe balance of payments, and FDI affect the economy growth four aspects reviewedthe research form domestic and abroad. Secondly, give a Systematic research aboutthe theory of FDI impact foreign exchange reserves, reviewed the theory of theproduct life cycle theory, the theory of marginal industrial expansion, internationalproduction comprehensive theory and other theories about foreign direct investment.reviewed the mercantilist theory, the theory of the structure of the balance ofpayments, crisis prevention needs theory and other foreign exchange reserves theory,and also introduce the industry life cycle theory. Third, analysis the status of China’sFDI and foreign exchange reserves。Fourth, deeply study the mechanism of FDI’simpact on China’s foreign exchange reserves., The study of FDI on the foreignexchange reserves from the impact of FDI on the balance of payments current accountand financial capital project. Fifth, establish the model, empirical analysis of theimpact of FDI on China’s foreign exchange reserves. Through descriptive statisticsand regression analysis, empirical the relationship between the formation of FDI, netexports and the amount of money supply and foreign exchange reserves, so as toverify the mechanism of the impact of FDI on China’s foreign exchange reserves.Finally, proposed some advice about improve FDI policy and regulations,continueattract foreign investment, guide FDI’s industrial layout, improve the quality ofusing foreign capital and strengthen the foreign exchange reserves management,andthen improve the level of China’s foreign direct investment management and foreign exchange reserves management.