Research On The Influence Of The Depth Of FTA Investment-Related Rules On GVC Division Status

In recent years,in addition to the increase in the number of free trade agreements(FTA),FTA also shows new characteristics of increasingly strong horizontal differentiation and vertical deepening.Horizontal differentiation shows that there are obvious differences in the depth and breadth of FTA provisions signed between different countries.While vertical deepening shows that many FTA contracting counties have completed the negotiation of renewal FTA or are in process,thus promotes the deepening of free trade agreement.The types and number of post-border issues under discussion in FTA are gradually increasing,including intellectual property protection policy,competition policy and investment and other issues,and the depth of FTA provisions is constantly enhancing.This is because the development of multilateral trading system tends to stagnate,in order to continuously expand existing international market shares,to seek new trade and investment markets,to maintain and improve their division status in global value chain,various countries in the world turn to new platforms for bilateral and regional free trade agreements.The key for developing countries to further integrate into Global Value Chain(GVC)and improve their position in the international division of labor is to sign high-standard rules,especially those investment-related rules,such as investment provisions,intellectual property protection,competition policy,rules of origin,technical barriers to trade,etc.Based on this,this thesis has certain theoretical and practical significance to study whether the depth of FTA investment-related rules can influence the division status of Global Value Chain(GVC),whether there is heterogeneity influence on countries at different levels of development,and whether the depth of individual clause in investment-related rules also influences and how to influences the division status of GVC.Based on the DESTA database,the thesis firstly calculates the depth of investment-related rules in stock agreements signed by 26 developing countries and 31 developed countries,and calculates the GVC position index and participation index of these countries by using the value-added data from the OECD-Ti VA database.Through description and analysis of the development situation of the FTA and GVC division status in developing countries and developed countries,this thesis finds that there exist some differences.Then,the thesis analyses the impact of the depth of FTA investment rules on the GVC division status by using extended gravity model,also taking the robustness test and heterogeneity analysis.Empirical research shows that:(1)the depth of FTA investment-related rules can significantly promote GVC division status.The number of FTA has a significant and negative effect on GVC.(2)Compare to developed countries,the depth of FTA investment-related rules signed by developing countries has a significant effect on their GVC status.And for the FTA signed with developed countries,the depth of investment rules has a significant role in improving the GVC status of developing countries.(3)For four types of FTA signed by “North-North”,“North-South”,“North-South” and “South-South” countries,there is a great difference in the influence of the depth of the individual provision in investment-related rules on the GVC division status.There is obvious heterogeneity in the influence of provision depth of investment,competition policy and technical barriers to trade on GVC division status of different countries,and the influence of provision depth of intellectual property protection and rules of origin on different countries tend to be consistent.Against the background of the preceding chapters,this thesis puts forward three targeted suggestions for China to sign FTA.Firstly,to upgrade the original FTA,expand the negotiations on post-border issues in the agreements,and appropriately deepen the depth of FTA investment-related rules,for example,to promote new provisions on investment protection and anti-dumping which are beneficial to China’s development of economic and trade;Secondly,to initiate substantive FTA negotiations with the United States and the European Union,and move closer to international high-standard and high-quality FTA and closer to economic and trade rules;Finally,to promote cooperation between FTA and regional or multilateral economic,insist on calling on developed countries to participate in and promote the development of the multilateral trade system.