Research On The Impact Of Two-way International Investment Synergies On The Position Of Global Value Chain

The world today is experiencing a great change that has not happened in a century.The rise of trade protectionism keep rising one after another.China has considered the situation and proposed to “accelerate the construction of a new development pattern with the domestic big cycle as the main body and the domestic and international double cycles promoting each other”.Against the backdrop of the severe international political and economic situation and the new development pattern,China’s manufacturing industry is facing challenges not only from “crowding out” and“low end locking in” from developed economies upstream of the value chain,but also from developing economies downstream of the value chain to China’s "world factory" status.Against the backdrop of both internal and external constraints,China urgently needs to break through the high value-added links of the global value chain,leapfrog the development stage of "world processing plants",and then move upstream to the global value chain.Therefore,with the parallel growth of IFDI and OFDI in China in recent years,it is of great strategic significance to explore the impact of two-way investment on China’s global value chain position.In this context,this paper integrates IFDI,OFDI and GVC into the same framework,taking the synergies of two-way FDI as the starting point,and focusing on their impact on the status of global value chains.Firstly,by constructing the global value chain status index,the global value chain status of 19 countries from 1995 to2018 is measured and compared and analyzed.Secondly,on the basis of combing the existing research,the internal mechanism of two-way FDI synergy on the climbing of the global value chain is discussed,and relevant hypotheses are proposed.Then,through quantitative analysis to test the theoretical hypothesis,focusing on the impact of national two-way FDI synergy on the status of the global value chain,the empirical test shows that,in general,two-way FDI synergy can promote the status of the global value chain.From the perspective of national heterogeneity,two-way FDI synergy can promote the improvement of the global value chain status of developing and developed countries,but the impact on the global value chain status of resource-based countries is not significant.Then,through the intermediary effect,it is concluded that the rationalization of industrial structure and the advanced industrial structure play an intermediary role and conceal the impact of two-way FDI synergy on the status improvement of the global value chain,respectively.Finally,this paper puts forward specific policy suggestions and provides practical guidance for China to coordinate the interactive development of IFDI and OFDI to achieve the climb of GVC position.