Research On The Impact Of Bidirectional FDI On The Upgrading Of Manufacturing Global Value Chain

The continuous deepening of economic globalization has led to unprecedented changes in the division of labor in the global value chain,and OFDI and IFDI are very important channels for a country to enhance its position in the global value chain.At present,various countries have dual roles as host and home countries for international direct investment.Utilizing FDI to engage in production activities in the value chain has gradually deepened the degree of embedding countries into the global value chain,which is of great significance for countries’ manufacturing industries to enhance their position in the global value chain.This article mainly explores the positive role of two-way FDI in upgrading the global value chain status of the manufacturing industry from both theoretical and empirical perspectives.At the theoretical level,by constructing a theoretical model and analyzing the mechanism,it is concluded that the interaction between OFDI,IFDI,and bidirectional FDI will all have a driving effect on the upgrading of the manufacturing value chain.In terms of empirical analysis,this article uses Koopman’s global value chain status index and combines the availability of dependent and explanatory variable data to select 59 representative countries from a total of 67 countries published in the TIVA database,including 31 developed countries and 28 developing countries.The database is used to calculate the global value chain status of manufacturing industries in these 59 countries from 2001 to 2018,using them as the dependent variable,Simultaneously selecting OFDI,IFDI stock,and two-way FDI interactive development as explanatory variables for empirical testing.Research has found that OFDI,IFDI,and bidirectional FDI interactions all have a significant positive impact on the GVC status of the manufacturing industry.In addition,heterogeneity testing found that two-way FDI has a significant positive impact on the global value chain status of different types of countries and industries,but the degree of impact varies.Finally,using mechanism testing,it is concluded that technology spillover effects and industrial upgrading effects are important factors for bidirectional FDI to affect the upgrading of the global value chain status of the manufacturing industry.