The Research On The Effect Of Exchange Rate On Chinese Direct Investment In Kazakhstan

The exchange rate is an important factor in a variety of economic behavior impact on theinternational market. Overseas Direct Investment as an important economic activity in theinternational market will be affected. Although the research scholars at home and abroad onthe impact of exchange rates on foreign direct investment has been a lot of their object ofstudy are more concentrated in developed countries and developed countries， developed anddeveloping countries， little research among developing countries， and there is no unifiedconclusions of the study.In Kazakhstan since the establishment of diplomatic ties20years ago， on the one hand，China and the Government of Kazakhstan， the exchange rate of the national currency， withvarying degrees of adjustment， resulting in the exchange rate of RMB and tenge has adifferent degree of volatility， on the other hand， China’s direct investment in Kazakhstanshowing a fluctuating state， then the RMB and its volatility whether the impact of China’sdirect investment in Kazakhstan， the impact， we do not know. The occasion of the20thanniversary of the establishment of diplomatic relations between Kazakhstan researching thisproblem and to promote friendly relations between the two countries is very meaningful.System analysis of domestic and foreign scholars in the exchange rate and exchange ratevolatility on foreign direct investment and what impact results of theoretical and empiricaltest， and then in order to analyze the changes in the RMB exchange rate of the specificimpact of the Chinese direct investment in Kazakhstan both descriptive analysis. After the1995-2011RMB real exchange rate and its volatility， China’s real GDP growth，dependence on foreign trade of China and Kazakhstan， and the exclusion of economies ofscale are measured based on the flow of direct investment in Kazakhstan by the Associationintegration test， error correction model， impulse response function and variancedecomposition range of measurement， the real exchange rate and its volatility system， deepanalysis of China’s direct investment in Kazakhstan. Last descriptive analysis and empiricalresults， in the context of the continuous appreciation of Renminbi， the correspondingrecommendations on how to mitigate the risk of exchange rate fluctuations from thegovernment， banks and enterprises， to achieve the purpose of effectively avoid exchangerate risk， so as to promote China direct investment in Kazakhstan.