Construct Theoretical Models about FDI Strategy Motivations & Exchange Rate Based on CES Product Function
By establishing theoretical models（cost oriented FDI & market oriented FDI） of FDI Strategy motivations & Exchange rate, and separately carries on the solution to them, thus theoretically has proved the exchange rates influence to two kinds of FDI Strategy motivations and the difference between them, draws out: The wage rate rise can have the negative effect to FDI; The currency value can have positive effect on market direction FDI and negative effect to cost guidance FDI. The result of the model based on CES product function (investment about exchange rate and wage-rate elasticity) is effective、objective and reasonable. We analyze them and draw the conclusion: the foreign merchants regard our huge market as the most important factor in deciding their investment; the next is using our inexpensive labors and the rich natural resources. Based on the present RMB reality and the anticipated revaluation question, propose the corresponding countermeasure.
real exchange rate FDI improved model cost oriented market oriented
XU Yunbao TIAN Yixiang
School of Economy & Management, University of Electronic Science and Technology of China, Chengdu, C School of Economy & Management, University of Electronic Science and Technology of China, Chengdu, C
国际会议
大连
英文
1-5
2009-06-29（万方平台首次上网日期，不代表论文的发表时间）