Journal of Northeastern University(Social Science) ›› 2020, Vol. 22 ›› Issue (6): 24-30.DOI: 10.15936/j.cnki.1008-3758.2020.06.004

• Economics and Management • Previous Articles     Next Articles

A Study on the Influence of RMB Exchange Rate Fluctuations on the Risk of Chinese Enterprises' Foreign Direct Investment

YANG Da   

  1. (School of International Economics and International Relations, Liaoning University, Shenyang 110136, China)
  • Received:2020-03-30 Revised:2020-03-30 Online:2020-11-25 Published:2020-12-22
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Abstract:

Using the data of Chinese listed companies that have foreign direct investment behaviors between 2011 and 2016, this paper empirically tests the impact of the two detailed indicators of the change of RMB exchange rate level and the fluctuations of RMB exchange rate on the risk of foreign direct investment of Chinese enterprises. The paper further tests the impact of enterprise productivity on the influence of changes in the RMB exchange rate on the risk of Chinese companies' foreign direct investment. The empirical results show that the risk of Chinese enterprises' foreign direct investment significantly and positively correlates with the appreciation of RMB and the fluctuations of RMB exchange rate. It also shows that increasing the productivity of enterprises helps to alleviate the risk of Chinese enterprises' foreign direct investment caused by the fluctuations of RMB exchange rate.

Key words: exchange rate level, exchange rate fluctuations, the risk of foreign direct investment

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