A Study On The Impact Of IFDI On OFDI Under The Perspective Of Global Value Chain

With the deepening economic globalization,the world's economic openness has been grown,economic relationship between countries is more closely related.Transnational corporation's foreign direct investment is the main driving force of economic globalization.With the promotion of transnational corporation's foreign direct investment,more and more countries are embedded in the "global value chain" system.FDI and OFDI are the basic forms of transnational capital flow,and there is a close relationship between FDI and OFDI.But whether FDI can influence OFDI or not? What are the specific ways and channels? Current studies have not answered these questions.FDI might upgrade the host country's industrial structure and technical level so as to promote the country's global value position and improve the country's OFDI ability.Or FDI might make host country stuck into “the low-end value chain lock”,and hinder the development of the country's OFDI ability.Considering the close relationship between FDI and OFDI,this paper chooses the perspective of global value chain to analyze the impact of FDI on OFDI,which is both theoretically and practically significant.Based on the perspective of global value chain,this study analyses the theoretical effects of inward foreign direct investment on outward foreign direct investment.On the basis of theoretical analysis,this study uses a panel dataset covering 42 countries during2000—2014.The three-stage least squares(3SLS)method is adopted for our econometric models according to an established simultaneous equations including outward foreign direct investment,global value chain position index and global value chain participation index.The empirical results show IFDI promoted OFDI by raised global value chain position;IFDI improved global value chain participation overall,but did not influenced OFDI;By further analysis,IFDI reduced upstream participation of global value chain,and raised downstream participation of global value chain.IFDIpromoted OFDI by raised global value chain position both in developed countries and in developing countries,however IFDI has more obvious effect on global value position in developed countries.In developed countries,IFDI promoted OFDI by improving participation of global value chain;however,in developing countries,IFDI made the country stuck into low-end value chain lock by improving participation of global value chain,and so as to reduced OFDI.