Author(s)

Yao Yao and Yizhen Zhou

Corresponding Author

Yizhen Zhou

Abstract

This paper analyzed the interaction between outward foreign direct investment and participation in global value chain. The mechanism of how outward foreign direct investment could influence global value chain is analyzed, from different types of investment and different channels. Reverse technology spill over and marginal industry transfer effects are examined, productivity improvement and innovation is illustrated. The interaction of outward foreign direct investment, global value chain and structural reform is discussed, emphasized on technology advancement and innovation. The impact of the Road and Belt initiative on the position of China in the global value chain is also studied, from the perspective of economic openness and regional integration, policy coordination and investment barriers, with case studies to elaborate industry upgrading, strategic resource and market share derived from overseas mergers and acquisitions. Integration between independent innovation, value chain and introduction of technology could be the focus point in policy guidance.

Keywords

Outward Foreign Direct Investment; Global Value Chain; Structural Reform