Research On The Impact Of International Non-equity Modes On Host Country's GVC Division Position

With the constantly deepening of the Global Value Chain(GVC)and the increasingly active of International Non-Equity Modes(NEM),Transnational Corporations bring host country companies into the Global Value Chain through International Non-Equity Modes.If the different forms of NEM have different characteristics,how will the heterogeneity influence the GVC division position of host country?Based on the property right theory of incomplete contract,this paper attempts to analyze the impact of heterogeneous NEM on the GVC division position of host country.Firstly,this paper classifies the different forms of NEM,internationally compares the development of NEM;and uses Koopman(2010)'s KPWW method,measures and analyzes the GVC division position and GVC participation degree of major economies.Secondly,this paper analyzes the heterogeneity of the different forms of NEM,and brings the heterogeneity into the property right model of incomplete contract,analyzes the influence of heterogeneous NEM on host country's GVC division position,and separates the specific impact path.Thirdly,this paper constructs the econometric model,and uses the panel data of 43 countries from 2000 to 2014 to test the theory.Finally,based on the analysis of China's participation in NEM and the GVC division position,this paper puts forward some suggestions on how to use the heterogeneous NEM to improve the GVC division position of china.Through theoretical analysis and empirical test,the following conclusions are obtained:(1)Modular and Relational NEM promote the GVC division position of host country,and Captive NEM inhibits the GVC division position.The research of impact path shows that:the impact of heterogeneous NEM on GVC division position depends on the net effect of forward participation and backward participation,and the former is greater than the latter.(2)For the different level of institutional quality,there are differences in the effect of NEM:with the improvement of the host country's institutional quality,the improve effect of Modular and Relational NEM will decline,the inhibit effect of Captive NEM will be alleviated.(3)Institutional quality,innovation capacity,human capital,infrastructure and labor endowments promote GVC division position,while trade liberalization inhibits GVC division position.After considering institutional quality,the effect of institutional quality,innovation capacity and human capital are different.(4)The analysis on China shows that:Modular NEM promotes the GVC division position by improving forward participation,Relational NEM inhibits the GVC division position by increasing backward participation,Captive NEM have no effect on GVC division position,forward participation and backward participation.