Research of the Role of RMB Exchange Rates in China’s OFDI to ASEAN Countries
HE Rong1, LIAN Zeng1, LI Chao2, LIU Yang1
1.International Business School, Beijing Foreign Studies University, Beijing 100089, China; 2.National Academy of Economic Strategy, Chinese Academy of Social Sciences, Beijing 100028, China
Abstract ASEAN countries are the major destinations for China’s OFDI. In order to better understand how exchange rates affect China’s OFDI to ASEAN, a mathematical model was constructed and we discovered that the current exchange rate level, the expected exchange rate level and the fluctuation of exchange rate had different influences on China’s OFDI. By applying a fixed effects model and GMM regression model with related data from 2005 to 2014, we found out that exchange rate and the expected exchange rate had consistent results with theoretical model prediction and significant effects on China’s OFDI to ASEAN countries, while the fluctuation of exchange rate is consistent with model prediction but not significantly related.
2017, Vol. 34 
