Abstract：
In the light of the opinion that the appreciation of RMB will lead to the decrease in FDI inflow, the author added to gravity model the variables of the cost of labor, the cost of resources, the trade aggregate and the effect of exchange rate to do the research. The analysis result shows that exchange rate is the primary factor influencing FDI, the economic aggregate and international economic cycles are also important influencing factors of FDI inflow, and at the same time the effect of the cost of labor is conspicuous, too
2011 
