Influence of Exchange Rate on Foreign Direct Investment Inflows: An Empirical Analysis Based on Co-Integration and Granger Causality Test

Figure 1

(a) FDI inflow in China and exchange rate. (b) FDI inflow in typical provinces. Note. (1) In Figure 1(a), the grey curve (on the left axis) represents the FDI flowing into China (unit: 100 million Chinese Yuan) and the black curve (on the right axis) represents exchange rate between USD and RMB over 1985–2019 (unit: ￥ per $). (2) In Figure 1(b), in addition to Zhejiang (blue line), three typical provinces are selected for description, red line for Guangdong province with the highest FDI inflows, green line for Jiangxi province with the middle ranking in FDI inflows, and purple line for Xizang province with the lowest FDI inflow (unit: 100 million Chinese Yuan).

(a)

(b)