Exchange rate uncertainty and the timing of Chinese Outward Direct Investment

In this online seminar, prof. Zhang will discuss the timing of Chinese ODI under exchange rate uncertainty by employing the Cox proportional hazards model. Both exchange rate level and volatility are important determinants, and RMB depreciation and greater volatility will deter ODI. Such adverse effect is more striking for non-SOEs, firms in the eastern region, and non-exporting firms. With China’s recent exchange rate formation mechanism reform, the impact of exchange rate uncertainty is expected to be stronger. These findings have important implications for China’s exchange rate regime reform and its “Going Global” strategy.

Speaker info

Zhaoyong Zhang obtained his Ph.D. from the Catholic University of Leuven (Belgium), currently is a Professor of Finance & Economics and Stream Leader, AIM (Asian and International Markets), Markets and Services Research Centre (MASRC), School of Business & Law at Edith Cowan University (ECU) in Australia. He is also an IETE fellow. His research interests lie in monetary and financial market integration in East Asia, real output co-movement, exchange rate policy in the Chinese economy, international trade and finance, financial market integration in East Asia, foreign trade-FDI linkages associated with regional monetary integration, exchange rate policy in the Chinese economy and financial market and financial market integration in the Asia-Pacific region.

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