Research On The Development Of Two-way FDI Development In China's Manufacturing Industry And The Upgrading Of Global Value Chains Under The Perspective Of Heterogeneity

For more than 40 years of reform and opening up,China has introduced large-scale foreign investment through manufacturing,developed processing trade,and quickly embedded in the global value chain led by developed countries,realizing the upgrading of processes and products.However,due to the lack of core technologies and brands,further upgrading of the industry has been hampered.With the "going out" strategy and the "one belt and one way" strategy put forward and implemented,China has vigorously developed outward foreign direct investment,and opening to the outside world has focused on introducing foreign capital into a new stage of two-way investment layout.So,what impact does the development of two-way investment have on the upgrading of China's industry? This is a question worthy of further discussion.Most of the existing literatures discuss the impact of IFDI or OFDI on global value chain upgrading from an independent perspective.Therefore,this paper takes manufacturing industry as the research object,integrates IFDI and OFDI into the same framework,and distinguishes the horizontal and vertical FDI.It empirically analyses the impact of different properties of IFDI,OFDI and their interaction on the upgrading of China's manufacturing global value chain from the static and dynamic levels,so as to provide theoretical inspiration and empirical evidence for the upgrading of China's manufacturing global value chain.Firstly,by systematically reviewing the relevant literature on international direct investment and global value chain,this paper examines the positive or negative effects of IFDI and OFDI on the upgrading of global value chain in manufacturing industry,and explores the interaction of two-way FDI on the upgrading of global value chain in manufacturing industry from the aspects of capital supply and loss,factor resource allocation,technology spillover,low-end lock-in and breakthrough.At the same time,the mechanism of different properties of IFDI,OFDI and the combination of different properties of two-way FDI on the upgrading of global value chain is further considered,and the conceptual model of two-way FDI and manufacturing global value chain upgrading is constructed,and the corresponding research hypothesis is put forward.Secondly,the development of two-way FDI in manufacturing industry and the position of manufacturing industry in global value chain are analyzed qualitatively and quantitatively.On the one hand,it studies the development of two-way FDI in China's manufacturing industry from the perspective of two-way FDI scale,industry distribution and regional distribution,and analyzes the development characteristics of manufacturing two-way FDI by calculating the intra-industry investment index and the two-way FDI interactive development index.On the other hand,using the 2016 World Input-Output Database,the WWZ method is used to decompose and analyze the total export trade of China's manufacturing industry,and to measure the global value of manufacturing in 43 countries including China and 17 sub-division manufacturing industries.The chain status index compares and analyzes the position and causes of China's manufacturing industry in the global value chain.Then,the static panel model and dynamic GMM model are constructed based on the data of 17 manufacturing industry segments in China from 2000 to 2014 to test the impact of different properties of IFDI,OFDI and different properties of two-way FDI combination on the status of global value chain.The following conclusions are drawn:(1)The overall IFDI of manufacturing has no significant impact on the global value chain upgrade,but market-oriented IFDI has promoted the upgrading of global value chains.Export-oriented IFDI has inhibited the upgrading of global value chains.(2)Overall manufacturing OFDI and vertical OFDI have promoted the upgrading of global value chain,while horizontal OFDI has inhibited the upgrading of global value chain division.(3)The interaction of two-way FDI in manufacturing industry promotes the upgrading of global value chain.Market-oriented IFDI and horizontal or vertical OFDI have a positive interaction with the upgrading of global value chain,but the interaction with vertical OFDI is stronger.The interaction between export-oriented IFDI and vertical OFDI can promote the upgrading of global value chain,but the interaction with horizontal OFDI has a negative impact.(4)Human capital,capital-labor ratio,export propensity and industry scale can promote the upgrading of global value chain of manufacturing industry.R&D investment has a lagging effect on the promotion of global value chain status,and government support has not shown significant correlation.Finally,based on the conclusion of mechanism analysis and empirical test,this paper proposes a two-way FDI coordinated development strategy oriented to the upgrading of manufacturing global value chain.In the aspect of IFDI,we should pay attention to the quality of introducing foreign capital and increase the market-oriented IFDI;in the aspect of OFDI,we should strengthen government guidance and vigorously develop vertical OFDI;and in terms of coordination of two-way investment,we should constantly improve the domestic investment environment,foster large-scale manufacturing enterprises with two-way development,promote orderly inflow and outflow of factors,and jointly realize effective allocation of resources.