Direct and Indirect Effects of Business Environment on BRI Countries’ Global Value Chain Upgrading

Shengbing He, Huilin Yao and Zhou Ji
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Shengbing He: School of Business, Hunan University of Science and Technology, Xiangtan 411201, China
Huilin Yao: School of Business, Hunan University of Science and Technology, Xiangtan 411201, China
Zhou Ji: Shanghai National Accounting Institute, Shanghai 201702, China

IJERPH, 2021, vol. 18, issue 23, 1-16

Abstract: This study incorporates business environment, foreign direct investment (FDI), and the global value chain upgrading into a unified analysis framework to unravel the effects of business environment and FDI on the Belt and Road Initiative (BRI) countries’ status elevation on the global value chain. The panel data of 112 BRI countries from 2007 to 2017 are employed for empirical tests on the trilateral relationship through the panel data regression model. The results show: (1) business environment improvement and FDI inflow significantly promote BRI countries’ status elevation on the global value chain. Business environment not only elevates BRI countries’ status on the global value chain directly, but indirectly lifts their status through the intermediate effects of FDI; (2) business environment and FDI significantly promote the status elevation on the global value chain for industries that are intensive on varied factors, especially for labor-intensive industry; (3) the test results of the panel threshold model further verify the positive effect of the business environment and FDI inflows on BRI countries’ status elevation on the global value chain.

Keywords: business environment; FDI; BRI countries; status elevation the global value chain (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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