Comparison of the relationships between FDI and economic growth, fluctuations of exchange rate

In an open economic environment, the trend of global economic integration is increasing, the ratio of FDI in host country's international balance sheet grows significantly. FDI has become one of the most important factors in the development of host country. This article reviews the literature about FDI and its effects on the host country's economic growth and fluctuations of exchange rate, classifies the research into two types: positive and negative. Then we test it using the data of Japan, India, China, Korea, US, Australia, South Africa, Iceland, Netherlands, the result shows that the both types of effects exist.