The Study On Global Value Chain Upgrading Effect Of OFDI Of Manufacturing Industry

With the deepening of the global economic integration,now,the division of global value chain with "fragmentation" as the main feature has become the main form of international division of labor.With the advantage of abundant labor resources,Manufacturing industry inserts in Global Value Chains.But the whole Manufacturing industry are more in a low-added-value links,because of the lack of core technology.Meanwhile,with the implementation of “Going Out” Strategies,Outward Foreign Direct Investment(OFDI)of Manufacturing industry have been increasing rapidly.Whether rapid increasing OFDI of Manufacturing industry will promote the status in Global Value Chains remain to be soived.In fact,the foreign and domestic literatures on the relationship between OFDI and Value Chain Upgrading are mainly based on reverse technology spillover or transferring the marginal industry,few of which studies OFDI of Manufacturing industry and Value Chain Upgrading systematically.The further research on Global Value Chain Upgrading Effect of OFDI of Manufacturing industry through qualitative and quantitative analysis methods has significant theoretical and practical implications.This paper firstly analyzes the theoretical basis of Global Value Chain Upgrading Effect of OFDI,reviews the theories on the relationship of OFDI and Global Value Chain Upgrading,and explains the mechanisms how OFDI induces Global Value Chain Upgrading.Then,this paper introduces the current situation of OFDI of Manufacturing industry and the status in Global Value Chains of Manufacturing industry.Furthermore,the paper empirically analyzes Global Value Chain Upgrading Effect of OFDI of Manufacturing industry with the panel data of 14 Manufacturing sub-sectors.According to the research,OFDI of capital or technology-intensive manufacturing industries will help promote the status in Global Value Chains,while OFDI of the labor or labour-intensive manufacturing industries have negative effects on the promotion of the status in Global Value Chains.At last,in order to promote the growth of OFDI of manufacturing industry and improve our division status under global value chain,some policy implications are brought out,such as,actively encouraging enterprises to go out,etc.