The Industry Effect of Inward FDI Influenced by the Exchange Rate Change

摘要

This article establishes the suitable econometric model to analyze the influence of the FDI inflow on the industry under the condition of exchange rate change. According to empirical results, we hold that alteration in exchange rates affect FDI inflows to China, which has the impact on the industrial and sectoral structure and as a result different industry effects are presented. Finally, the proposed future use of China's exchange rate policy and FDI policy are recommended.