The Impact Of Bilateral Investment Treaties On China's Ofdi And The Research Of The Effect Of Value Chain Division

With the rapid development of outward foreign direct investment in China and its active participation in the global investment governance,the impact of bilateral investment treaties(BIT)on outward foreign direct investment(OFDI)is attracting a lot of attention.With the treaties signed between China and developed countries gradually accepting the stricter international standards of investment protection and "negative list and pre-establishment national treatment " foreign investment management model trying to implement in China,the impact of bilateral investment treaties on China's outward foreign direct investment is worth exploring.At the same time,since the domestic trade situation is not optimistic,exploring how outward foreign direct investment contributes to promote comparative disadvantage industrial transfer and industrial upgrading,improve the export trading gains,improve China particular sector's position in the global value chain has become extremely important.In addition,the effect of value chain division of China's outward foreign direct investment can also measure the economic performance of BIT on China's OFDI,revealing the quality of OFDI.Therefore,the scientific investigation of impact of bilateral investment treaties on China's OFDI and its effect of value chain division has an important role.First of all,the paper analyses the relevant theory and literature,and finds:first,the BIT and OFDI previous related research hardly consider the content and strictness of the BIT;Second,the relationship between OFDI and trade,China's trade volume did not distinguish the actual trading gains,which easily misjudging OFDI trade effect.To this end,the paper constructs the BIT index,selects the data from 2000-2014 WIOTs and decomposes the bilateral trade exports by trade method in value added.Secondly,the paper uses the BIT index,stock of outward foreign direct investment,indirect domestic value added export and other variables to establish transnational panel data model and analyzes the influence of BIT on OFDI and OFDI on indirect domestic value added,respectively.The empirical results show:the direct effects of BIT is not significant,while indirect effects are significant by institutional environment and unilateral investment liberalization,OFDI under the motives of market seeking and strategic assets seeking are more significant;OFDI significantly promoted the indirect value added exports,OFDI has no significant negative impact on the low and medium technology industries,Other industries have a significant role in stimulating,One of the strongest pulling effect on medium technology industries by FDI flowing into developing countries.Finally,according to the empirical results,some corresponding countermeasures and suggestions are put forward.