Asymmetric Study About The Impact Of RMB Exchange Rate Change On FDI

Foreign direct investment(FDI)plays an important role in promoting China's economic development.It is one of the important economic factors for China to expand investment,promote export and optimize and its industrial structure.Under the widespread influence of economic globalization,the opportunities of transnational investment increase,the transnational transactions of capital become more frequent,and the restrictions on the flow of capital are gradually reduced.Since the reform and opening,the inflow of foreign direct investment in China has steadily increased,attracting a large amount of capital and technology,promoting the healthy development of various industries in China,and the economic results achieved are obvious to all.According to the World Investment Report 2016,the flow of foreign direct investment in China reached 135.6 billion US dollars in 2015,an increase of 6% over the previous year,and the stock reached 122.9 billion US dollars,which is still strong.Exchange rate,as a bridge of international capital flow,runs through currency exchange and production activities all the time,and has an important impact on the overall size and structural distribution of FDI.Since RMB joined SDR,RMB exchange rate has changed more frequently.Studying the impact of RMB exchange rate changes on FDI inflows and focusing on its asymmetry has important guiding significance for attracting foreign investment and policy deployment of domestic industrial economy.By dividing different types of FDI,introducing threshold regression model,and setting exchange rate fluctuation as threshold variable,this paper studies the asymmetry and concrete manifestation of the influence of RMB exchange rate fluctuation on FDI inflow,and further analyses the differences and characteristics of different types of FDI under exchange rate fluctuation combined with economic theory,so as to provide valuable suggestions for foreign investment.