The Impact Of Real Effective Exchange Rate Of RMB On Foreign Direct Investment Of G20 In China

Since the reform and opening up,China has been developing rapidly by improving the policy of attracting foreign investment and improving our investment environment.Among foreign investors,other members of G20 have always been an important part of FDI in China.In recent years,G20 has been playing an increasingly important role in global economic governance and promoting the development of the world economy.As a member of G20,China has increasingly closed with other members in economic and political relationship.Exchange rate fluctuation is an important factor that affects the economic relations of G20 members,and also has an important impact on foreign direct investment.Based on the perspective of RMB real effective exchange rate,this paper studies the impact of G20 on direct investment in China,and provides a scientific basis for the formulation of direct investment policy for G20 members.This paper is divided into six parts.The first part is the introduction,which describes the background and significance,content,framework and research methods of the paper,and summarizes the relevant literature.The second part elaborates the mechanism of how actual effective exchange rate affect foreign direct investment,respectively from the wealth effect,risk effect,cost effect and the effect of the capitalization rate four aspects.The third part,based on the compare of exchange rate and real exchange rate and collating the exchange rate regime,analyzes the long-term trend of the real effective exchange rate of RMB.The fourth part mainly analyzes the status of the G20's direct investment in China,and then it foreshadowing for the following empirical analysis.The fifth part is the empirical analysis,based on real effective exchange rate of RMB,GDP,China's export to G20 and the import of G20 in China,this paper analyzes the influence of the real effective exchange rate of RMB on the direct investment of the G20 in China through building model,granger causal relation test,and co-integration test.On the basis of results of the empirical analysis,the final part puts forward the policy suggestions,that is,to establish a more flexible RMB exchange rate regime;to promote the high quality of our economy;to optimize our business environment;to implement of the negative list system for foreign investors;to expand the amount of funding for developing countries.