Data description & Do file "Regional Integration, Exchange Rate Volatility and Overseas Investment of Chinese Enterprises"

Published: 15 August 2022| Version 1 | DOI: 10.17632/hn8zjc59vf.1
Contributor:
Md Shariful Islam

Description

Accessing the restricted-use data: We took the sample data form three main sources. 1. To sum up the greenfield investment project of each Chinese enterprise according to the destination country, the global greenfield investment data is collected from “FDI Markets”. Total 1350 observations are obtained from the database, which contains information on 123 countries. The dataset is an unbalanced panel for the years 2004 to 2015. In order to obtain data please access the below link to get the data, and audience will be able to access the data by purchasing according to their desired package. URL: https://www.fdimarkets.com 2. We aggregated the data of nominal exchange rate and trade volume from World Bank, and the data of consumer price level from World Development Indicators (WDI) database. The target country's GDP, per capita GDP, and GDP growth rate in the control variables are also obtained from the World Development Indicators (WDI). In order to obtain data please access the below link. URL: https://databank.worldbank.org/source/world-development-indicators 3. Data on control of corruption, regulatory quality, government effectiveness, and the rule of law are collected from the Worldwide Governance Indicators (WGI) database of World Bank. URL: http://info.worldbank.org/governance/WGI/

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Processing the data: As per our research goal, we have collected secondary data from the above sources and complied for the further analysis. As we have collected the data from paid and confidential sources, we are unable to disclose the final data set as per the terms and conditions of the sources. However, any readers can collect/buy the data from above sources and follow the instructions to make the final data set for crosscheck and validation. We followed the bellow process to calculated the Real Effective Exchange Rate (REER) of RMB by the direct markup method. Firstly, the US dollar, Japanese yen, Euro and British pound are set as a currency basket, and the proportion of China's trade volume (imports + exports) with each of the four regions to the total trade volume with the four regions is calculated separately for each year. This proportion is used as the multilateral weight to calculate the effective exchange rate of RMB, after the weighted direct exchange rate of the four countries. The real effective exchange rate of RMB is then calculated by deflating the consumer price index (CPI) of the destination countries with that of China in that year. W_it^b=(X_it+M_it)/∑_(j=1)^4▒〖(X_jt+M_jt)〗 (3) W_it^b represent multilateral weight. The nominal exchange rate and trade volume data are obtained from the World Bank, and the consumer price level data are obtained from the World Development Index database. When the subscripts i is 1, 2, 3, and 4, it denotes the United States, Japan, the European Union, and the United Kingdom, respectively. Currency denotes the corresponding currencies of the four countries. The export value of the sample country to country i in year t, denotes the import value of the sample country from country i in year t. Then the nominal effective exchange rate EER calculated according to the following formula: 〖EER〗_it^RMB=∑_(i=1)^4▒〖W_it^b*〖nominal(RMB/〖currency〗_i)〗_t 〗 (4) The nominal effective exchange rate is deflated to the real effective exchange rate using the price level of China and the host country. The formula is as follows: 〖Exchange〗_t=〖EER〗_t^RMB/(〖CPI〗_t^host/〖CPI〗_t^RMB) (5)

Institutions

Shandong University

Categories

Regional Economics, Exchange Rate, Foreign Direct Investment, Cross-Border Investment, Economic Integration

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