DocumentCode
2627513
Title
The relationship between FDI and foreign exchange reserve and its underlying causes
Author
Huang, Yanjun ; Qian, Liangying ; Zhong, Lu
Author_Institution
Coll. of Econ., Zhejiang Univ., Hangzhou, China
fYear
2011
fDate
27-29 June 2011
Firstpage
2763
Lastpage
2765
Abstract
This paper applies Co integration analysis and Granger causality test to obtain the relationship between FDI and foreign exchange reserve, using the annual data from 1982 to 2008. The empirical result indicates that there exists a long run equilibrium tendency and significant bi-directional Granger causality between China´ FER and its FDI. With further analysis, we know that a capital flow collateral relationship and financing mechanisms of U.S. current account exist between China and America.
Keywords
foreign exchange trading; international finance; America; China FER; FDI; U.S. current account; bidirectional Granger causality; capital flow collateral relationship; cointegration analysis; financing mechanisms; foreign exchange reserve; long run equilibrium tendency; Correlation; Economics; Finance; Instruments; Investments; Silicon carbide; Time series analysis; FDI; capital flow collateral relationship; foreign exchange reserve;
fLanguage
English
Publisher
ieee
Conference_Titel
Computer Science and Service System (CSSS), 2011 International Conference on
Conference_Location
Nanjing
Print_ISBN
978-1-4244-9762-1
Type
conf
DOI
10.1109/CSSS.2011.5975054
Filename
5975054
Link To Document