The relationship of interest rate, exchange rate, GDP and FDI with respect to Chinese economy

Abstract

Economic growth can be described as the boom in purchasing power of a country in offering the economic goals of its population. China is the major emerging market in Asia. Late 1970's China has gone through major economic reform, which leads them to the fastest developing country in the world. In this article, the Analyzer attempted to become aware of the impact of FDI, Real Interest Rate, Exchange rates and Gross Domestic Product (GDP) with respect to each other. Chinese GDP is greater than 10% over 30 years constantly. The researcher attempted to find the scope of the future boom of China and the global economic system, taken into consideration the current financial slowdown of China, the new economic interdependence between China and its trading partners created a variety of problems and so raised many issues that require further study the future of Chinese economy, also studied the china’s success story by comparing FDI, real interest rate, exchange rates and Gross Domestic Product for different developing countries to drive their economies by means of following Chinese model.