Research On Foreign Direct Investment And Global Value Chain Upgrade

Global economic integration has enabled more and more countries to participate in the global value chain division of labor,through the cooperation and exchange of countries in the global value chain,the resources are effectively allocated,and the global economy and trade have developed rapidly.Under the leadership of multinational corporations in developed countries,the status of developing countries in the global value chain is also increasingly reflected.However,due to the lack of core technologies and effective marketing management tools,developing countries are often in a disadvantageous position in the value chain.In the long run,economic development will be suppressed.China is the largest developing country in the world.It has participated in the low-end division of global value chain at the cost of low labor cost,low factor cost and environmental pollution for many years.However,with the increase of production factor prices,domestic resources,and global economic With the influence of many factors,China's original production structure is no longer applicable,and it is necessary to change production methods to promote the upgrading of China's global value chain status.As an important way for a country's capital to export,OFDI can quickly integrate China into the global division of labor,which is an important way for China to integrate and enhance the global value chain.In recent years,China's foreign direct investment has continued to develop.Under the guidance of the “going out” strategy,the “One Belt and One Road” strategy and the construction of the AIIB,foreign direct investment has made it possible for China's global value chain to climb higher.This paper mainly studies the impact of foreign direct investment on the upgrading of China's global value chain.Firstly,it expounds the related theories of foreign direct investment and global value chain,and focuses on several theoretical approaches to promote the value chain of foreign direct investment.Then it analyzes the current situation of China's foreign direct investment,and uses the value added trade decomposition method to calculate and analyze China.The status and international status of industry,industry and manufacturing segments in the global value chain.Through a large amount of data,this paper finds that China has a low level of overseas investment,and the manufacturing value chain has a high degree of participation but a low status.There is a certain relationship between the two;considering the differences in countries with different levels of development,this paper will be related to China.The 41 countries with economic and trade cooperation are divided into developed economies and developing economies to verify the relationship between foreign direct investment and global value chains.The empirical results show that China's foreign direct investment can significantly promote the upgrading of China's global value chain,including China's emerging economy.The overseas investment of China can effectively improve the status of China's global value chain.Finally,this paper explores the path of foreign direct investment to promote the upgrading of China's value chain through structural equation modeling,and divides the path of foreign direct investment into cost reduction and market expansion.The three levels of technological innovation analyze the origin of the investment chain in China.The empirical results show that,at present,China mainly relies on cost-seeking OFDI to enhance China's position in the global value chain.From the perspective of technology,the value chain of OFDI to low-tech industries is mainly through cost reduction.To achieve,the value chain of the low-and mediumtech industries relies on reducing costs and improving R&D capital,while the value chain of high-tech industries relies on reducing costs and increasing market share.Due to the technological monopoly of multinational corporations in developed countries,the role of high-level foreign direct investment behavior is still very small.Through the analysis of this paper,we can clearly understand the status of China's foreign direct investment and global value chain,and know the relationship between the two and the existing problems.The research evidence in this paper can be used for China's foreign direct investment and global value chain.Collaborative high-end development provides new evidence and new ideas.According to the research results of this paper,the article puts forward proposals to promote the upgrading of China's global value chain,including: continue to play the positive role of foreign direct investment in the global value chain upgrade,guide the rationalization of investment structure;guide the coordinated upgrade of foreign direct investment and global value chain Promote the two to move toward the highend;comprehensively deepen reforms,improve policy support,strengthen the allocation of resources in the foreign economic market,and release policy recommendations for the overseas investment dynamics of various entities.