Abstract

In this study, we use the real exchange rate volatility to refer to the instability of financial markets; with the food processing companies’ output value fluctuation refers to the instability of macroeconomic. We construct a panel data model which including 80 companies’ for quantitative analysis, the model analysis the influence of output value growth in food processing industry that open FDI caused. We also have estimate and test to explain the real contact between the FDI opening and economic instability. The result shows that: Open FDI has significant influence to fluctuation of output value in food processing industry, the coefficient is 31.88. However, FDI does not have a stable effect on industrial output value. Instead, the fluctuations of FDI will deepen fluctuation of the country, cause industrial output value instability and may cause economic crisis.

Keywords:

Economic stability, food processing industry, industrial output value, open FDI strategy, panel data,

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Competing interests

The authors have no competing interests.

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