Research On The OFDI's Influence On The Home Country's Status Of The GVC

At present,more than two-thirds of global trade is conducted through the GVC.In the era of the GVC,the international production sharing network has a wider coverage and a more complex chain.Production crosses at least one boundary,usually multiple boundaries,and connects countries closely.The GVC provides more convenient opportunities for developing countries to participate in the global economy.More countries share the dividend of the GVC division,and the economic development is greatly improved.As one of the main ways to participate in the world economy,OFDI is an important engine for developed countries to build the GVC,and also a main means for developing countries to actively participate in the GVC to seek a higher status.However,there are still some controversies about whether the participation in the global economy through the OFDI can enhance the status of countries in the GVC.Starting from the current situation of the GVC development and the upgrading form of GVC,this paper focuses on the status upgrading of China in the GVC,and constructs a complete analysis framework of the impact of OFDI on the status of GVC.Through the theoretical discussion,mathematical model derivation and empirical model test,it is confirmed that OFDI can affect the status of home country in the GVC,and there are three mechanisms: product value increase,technical progress and industrial structure upgrading.However,further research shows that OFDI from developed countries has significant promotion effect on the GVC in many aspects,while OFDI from developing countries has both promotion and hindrance on home country's status in the GVC.Finally,this paper focuses on the impact of China's OFDI on China's GVC status,and concludes that: China's OFDI can promote China's GVC status as a whole,but it promotes the backward participation more,which indicates that China's participation in the GVC has path dependence;and OFDI can better promote China's GVC status through the industrial structure upgrade effect,followed by the reverse technology spillover effect,that is,China's dilemma of changing the low-end lock-in of the GVC through the adjustment of industrial structure will be more significant;further extension analysis shows that China has a high dependence on imported intermediate products,and OFDI can promote the cross-border circulation of China's intermediate products,that is,increase the usage of intermediate products produced in China by other countries,then improve the division of labor status of China in the GVC.The main innovations of this paper are as follows:Firstly,a variety of possible paths and implementation forms for the status upgrading of GVC is built: in view of the mixed use of "status" and "location" in the existing research,this paper proposes a comprehensive concept of the global value chain status,defines and analyzes the relevant concepts such as "location",and defines the connotation and extension of the global value chain status,which is a conceptual innovation;Based on the generality of "climbing to the high-end link of global value chain" which is often mentioned in the existing research,this paper establishes an analysis framework of all paths of global value chain status upgrading based on the existing theory and research,and analyzes how different outward foreign direct investment affects the global value chain status upgrading,which is an innovation in the perspective and content of the global value chain upgrading.The second is to build a complete analysis framework of the impact of OFDI on the status of global value chain.In the current research,there is no comprehensive and complete analysis framework including "upgrading mode-action category and mode-induction main path-theoretical model support-empirical model verification" : Based on various ways of the global value chain status upgrading,this paper makes a theoretical elaboration on how different types of OFDI affect the global value chain status upgrading,and then summarizes three main paths that OFDI influences the status of global value chain as a whole.Then,this paper put forward the core research hypothesis and improve the models of existing scholars to construct a value chain model of global production sharing according to the research needs.Finally,the theory is tested with multi-national samples to support the core proposition of this paper.Thirdly,it deeply analyzes the internal mechanism of China's OFDI's influence on China's GVC status: it finds out that China's participation in the global value chain activities is more simple or more complex,whether China's participation in the global value chain production division changes more from domestic changes or foreign changes,or the promotion of intermediate products,as well as What is the impact of China's OFDI on China's domestic division of labor and the circulation of China's intermediate products in the world.The existing literature does not elaborate in detail.This paper makes up for the deficiencies in this respect.