The Influence Of The Change Of RMB Exchange Rate On China's Outward Foreign Direct Investment

In the development of today's world economy,the position of OFDI is becoming more and more high.For a country,it is bound to choose foreign investment when the economy develops to a certain stage.After China's reform and opening up,OFDI has also developed slowly,but the speed of development is swift and violent.According to the 2016 China OFDI statistical bulletin,by the end of 2016,China's OFDI flows were the second in the world.While China is in a critical period of economic transformation,therefore,under the implementation of the "The Belt and Road" strategy in the background of our country,research on the relationship between RMB exchange rate and China OFDI has certain practical significance.This paper mainly studies the relationship between RMB exchange rate change and China's OFDI,and analyses it from two aspects of exchange rate level and exchange rate fluctuation.First,the dynamic research of domestic and foreign scholars in these two aspects was summarized,and then expounds the related theory;second,the RMB exchange rate system reform to make a statement and analyze the current situation of Chinese OFDI,and qualitative analysis of the correlation between the real effective exchange rate of RMB and China's OFDI;third,to quantitative analysis on the relation between RMB exchange rate and Chinese OFDI,and the vector autoregressive(VAR)model as the core to establish econometric model for empirical research.Through the previous research,we draw the following conclusions: first,thetotal scale of China's outward FDI is expanding continuously;the industry structure of China's outward FDI is more reasonable;the location structure of China's outward FDI is still reasonable.Second,whether in the long run or in the short run,there is a positive correlation between RMB exchange rate and China's OFDI,and the relationship between RMB exchange rate volatility and OFDI is negatively correlated.Finally,according to the conclusions of this study,and from the perspective of China's RMB exchange rate system and the perspective of China's OFDI,the relevant suggestions are put forward.