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Global value chains and inward foreign direct investment in the 2000s
Author(s) -
MartínezGalán Enrique,
Fontoura Maria Paula
Publication year - 2019
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12660
Subject(s) - foreign direct investment , economics , value (mathematics) , international economics , global value chain , investment (military) , monetary economics , international trade , macroeconomics , comparative advantage , politics , machine learning , computer science , political science , law
In this paper, we make use of recent data published by the World Input‐Output Database to: ( i ) provide evidence on trade in value added of the major Organization for Economic Co‐operation and Development ( OECD ) member countries and major emerging economies (designated by OE country group), namely by measuring the degree of participation in global value chains ( GVC s) at the country and sectoral levels; and (ii) estimate whether the GVC participation of OE countries has positively influenced foreign direct investment ( FDI ) inward stocks in the 2000s. The pooled regression model estimated shows that the country′s degree of GVC participation has contributed positively for bilateral FDI inward stocks, after controlling for other possible FDI determinants.