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

Table 1

Summary of definitions of variables.

	Variables	Definition	Symbol	Data resources
Dependent variable	FDI inflow	Foreign direct investment into Zhejiang from the America (in 100 million Chinese Yuan)	USAFDI	Zhejiang Provincial Statistical Yearbook
Independent variables	The exchange rate	The price of RMB in units of USD	USDCNY	China National Statistical Yearbook
	Cost effect index	The ratio of the annual average wage of Zhejiang employees to the annual average wage in the America (both priced in US dollars)	WAGE	Zhejiang Provincial Statistical Yearbook and the international trade database
	Wealth effect index	GDP of America (in 100 million Chinese Yuan)	GDPX	The international trade database
	Demand effect index	GDP of Zhejiang (in 100 million US dollars)	FGDPX	Zhejiang Provincial Statistical Yearbook
Control variables	Government spending	The budget surplus in Zhejiang (percentage of total GDP).	BSGDP	Zhejiang Provincial Statistical Yearbook
	Trade openness	Import + export (for Zhejiang, in 100 million US dollars)	TMX	Zhejiang Provincial Statistical Yearbook