Research On The Impact Of China’s Outward Direct Investment On The Position Of The Regional Value Chain

In 2013,China has established a intimate relationship between neighboring countries in terms of investment and trade with the introduction of the initiative.Increasing investment in the "Belt and Road",especially in terms of scale and scope,proves that most Chinese enterprises continue to open their arms to the outside world.The necessity and feasibility of building regional value chains within the scope of "Belt and Road" countries are considered simultaneously.On the one hand,because countries with strong economic strength have the control ability in the value chain division system,it is almost whimsical to upgrade an industry in our country.Our country cannot occupy an advantageous position in such a system.On the other hand,China and countries along the line can learn from each other and make up for each other,and there is less friction,and the close geographical distance is also an advantage in the process of building regional value chain.Foreign direct investment is a propeller to enhance the status of a country’s value chain.It can not only move the production factors,but also further realize the efficient use of resources within the scope.In China,it is a productive propellant and a good helper for industrial upgrading.Our first measure is to break the overall stock of investment within the scope of the "Belt and Road" into industry level data and calculate value chain status indicators of China in this range.Analyze China’s foreign direct investment and explore China’s position in the value chain within the "Belt and Road" region.Through econometric test and empirical analysis,to observe whether China’s investment in the region will affect China’s position in the value chain.First,build a fixed effect model,and add human capital,R&D intensity,industry scale and fixed asset investment level control variables.After empirical analysis,an important finding is that investment can improve China’s position in the value chain within the region.Secondly,in the analysis of heterogeneity,the secondary industry and the tertiary industry have a higher position in the value chain division system.It will greatly improve the value chain status of industries with high labor requirements.It also injects vitality into the value chain position of high-tech industries.Then through the robustness test,the reliability of the conclusions in this paper is verified,and the endogenous problem of the model is alleviated.Finally,the mechanism test shows that China’s OFDI will significantly improve China’s position in the "Belt and Road" regional value chain through the marginal industry transfer effect.This article focuses on the "Belt and Road",which is more targeted cooperation and exchanges.It points out the leading role of China in this regional value chain and enriched relevant research in this scope.It can realize the transformation of China’s role in the world and explore other ways to better upgrade the industry.Based on the conclusion of this paper,China should continue to stimulate the vitality contained in the "Belt and Road",expand the communication circle of cooperation and close bilateral investment exchanges.This measure will promote the status of China’s value chain,at the same time,guide the economic prosperity of the host country.