fdi对外汇储备增长的实际效应_（_ actual effect of FDI on the growth of foreign exchange reserves）.docVIP

fdi对外汇储备增长的实际效应_（_ actual effect of FDI on the growth of foreign exchange reserves） The actual effect of FDI on the growth of foreign exchange reserves * Sun Wenkai, 1, may pine 2 (1 Renmin University of China; 2 McKinsey Co) Abstract: most scholars believe that the large-scale inflow of FDI is an important reason for the rapid growth of Chinas foreign exchange reserves in recent years. But some scholars have pointed out that a large part of FDI is physical assets investment, and not really formed foreign exchange supply, so the actual contribution of FDI to the growth of foreign exchange reserves is lower than its nominal contribution. This paper argues that the impact of FDI on the scale of foreign exchange reserves should not only take into account the direct effect, but also consider the indirect changes in foreign exchange reserves caused by FDIs participation in production, import and export and other economic activities. This paper estimates these two effects separately and finds that the actual contribution of FDI to foreign exchange reserves in 1986 ~2007 accounts for about 50% of the total foreign exchange reserves. Before 2003, the direct effect of the leading position, but from 2004 onwards, the indirect effect greatly exceeds the direct effect, is the main reason for the extraordinary growth of foreign exchange reserves. Key words: Foreign Direct Investment (FDI); foreign exchange reserve; actual effect FDIs, Real, Effect, on, the, Large, Increase, of,, Foreign, Exchange, Reserves Abstract: It is widely believed that the large inflow of FDI is a key factor on the large hoarding of official reserves in China. However, some scholars have argued that a large portion of FDI is invested in equipment and technology which in fact does not provide foreign exchanges. This paper argues that both the direct effect and the indirect effect should be considered when assessing FDIs contribution to foreign exchange reserves. This paper calculate both effect and find FD