Abstract
Global value chain (GVC) driven by multinational enterprises (MNEs)’ FDI plays a significant role in national economic development. Accordingly, many previous studies have focused on FDI as one of the major factors that determine GVC participation and made various attempts to understand the relationship between FDI and GVC participation, but have not yet yielded consistent results. Therefore, this study compared and analyzed the effect of existing FDI inflows with the OECD's Analytical AMNE database developed based on the local value-added activities of subsidiaries of multinationals on the production-based GVC participation rate and the trade-based GVC participation rate, respectively. As a result of the fixed-effects model panel analysis conducted for 43 countries from 2005 to 2016, it was found that Analytical AMNE statistics was appropriate for explaining the influence of FDI on GVC participation with the that production-based approach is more likely to explain the influence of major determinants shown in previous research on GVC participation.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
