DocumentCode
2158573
Title
Empirical research on the influence of real exchange rate volatility on US FDI in China
Author
Weiguo, Xiao ; Yang, Zhao
Author_Institution
Department of Finance, Economics and Management School, Wuhan University, Hubei Province, China
fYear
2010
fDate
4-6 Dec. 2010
Firstpage
222
Lastpage
225
Abstract
This paper carries on an empirical research on the influence of real exchange rate of RMB´s volatility on US FDI in China, adopting GARCH model, the VAR model and cointegration theory, based on quarterly data from 1994 to 2009. The result demonstrated that there is a stable relationship among the volatility of real exchange rate, real exchange of RMB and US foreign direct investment in China. The appreciation of RMB and the increase in volatility of exchange rate significantly hindered the US foreign direct investment in China.
Keywords
Biological system modeling; Economic indicators; Equations; Exchange rates; Fluctuations; Investments; Mathematical model; GARCH; US FDI; VAR; VECM; cointegration; real exchange rate;
fLanguage
English
Publisher
ieee
Conference_Titel
Information Science and Engineering (ICISE), 2010 2nd International Conference on
Conference_Location
Hangzhou, China
Print_ISBN
978-1-4244-7616-9
Type
conf
DOI
10.1109/ICISE.2010.5691659
Filename
5691659
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