Foreign Direct Investment and Exchange Rates in China

This paper focused on the relationship between exchange rates and FDI in China since the 1979 economic reform. Main determinants of FDI would be reviewed in the existing literature. In addition, this paper also attempts to explain the indirect impacts of FDI on China's exchange rates and exchan...

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Bibliographic Details
Main Author: Wang, Lulu
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2006
Subjects:
Online Access:https://eprints.nottingham.ac.uk/20545/
Description
Summary:This paper focused on the relationship between exchange rates and FDI in China since the 1979 economic reform. Main determinants of FDI would be reviewed in the existing literature. In addition, this paper also attempts to explain the indirect impacts of FDI on China's exchange rates and exchange rate systems over the last two decades. The four stages of China's exchange rate system reform would also be discussed and the utilization and distribution of FDI in China would be examined as well. Finally a simple approach to examine the relationship between exchange rates and FDI would be implemented. This study also reveals the importance of China's policies in attracting FDI in the analysis.