Research On OFDI's Embedded Effect On China's Global Value Chain

As the division of labor in product production has become increasingly fragmented,the global value chain division of labor characterized by "fragmentation" has become the main form of the current global division of labor.The production of the entire product is distributed in different countries and regions according to functional modules,and each country undertakes the production of different processes according to its own technical level and factor endowment.Foreign direct investment activities spread production to different regions,realizing the globalization and efficient allocation of resources.The development level of each industry under the global value chain determines the level and status of a country's participation in the global division of labor.At present,China has carried out a wide range of investment activities around the world.It is of great significance to study the effect and impact of the flow of factors using OFDI as a carrier on China's GVC embedding degree.The article first analyzes the effect of OFDI on GVC embedding degree.OFDI mainly affects China's embedding degree in GVC through technology reverse spillover effect and industrial structure adjustment effect.Then analyze the current status of China's OFDI and GVC embedding.China's current total scale of OFDI is gradually expanding.The main body of investment is limited liability companies.The industry mainly focuses on leasing and business services,wholesale and retail,finance,and manufacturing.Industry,Asia is China's main investment destination.The growth rate of indirect valueadded in China's exports is faster than that of exports outside China,indicating that China is gradually moving closer to the high-end position in the global value chain.From 2000 to2014,China's participation and status index of GVC has been in a state of volatility,the breadth of embedding in GVC has declined,but the depth of embedding is increasing,and the embedding situation of GVC is still far behind other countries.Among them,the second industry is most widely embedded in GVC,and the third industry is most deeply embedded in GVC.Finally,an empirical analysis is used to test the effect of OFDI on China's embedding in GVC.Analyze the problem from the perspective of China's overalland industry,and quantitatively analyze the effect of OFDI and China's embedding in GVC.The conclusions are as follows: OFDI mainly enhances China's embedding in the global value chain through technological reverse spillover effects and industrial structure adjustment effects.The technology reverse spillover effect is more obvious in promoting the depth of GVC embedding,while the industrial structure adjustment effect is more significant in promoting the breadth of GVC embedding.On the industrial level,OFDI also has a positive role in promoting the embedding of the three major industries in GVC.Among them,OFDI has the greatest influence on the embedding depth of the tertiary industry in GVC,and OFDI has the greatest influence on the embedding depth of the first industry in GVC.OFDI has the most significant technology spillover effect on the GVC embedding degree of the tertiary industry in China,and OFDI has the most significant industrial structure adjustment effect on the GVC embedding degree of the primary industry in China.