EconPapers    
Economics at your fingertips  
 

Interactions Between Global Value Chains and Foreign Direct Investment: A Network Approach

Amat Adarov ()

No 204, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: The world economy is increasingly shaped by cross-border production and investment activity. The paper uses complex network analysis along with panel data econometric techniques to study the structure and interactions between the networks of global value chains (GVC) and foreign direct investment (FDI). The analysis reveals that both FDI and GVC networks have a distinct core-periphery structure dominated by a relatively small number of countries with the USA constituting the global hub interlinked with regional European and Asian clusters, which, in turn, are centered around regional hub countries like China and Germany. Simultaneous equation model regressions using three-stage least squares suggest that FDI centrality facilitates GVC centrality of countries. However, FDI centrality is driven to a large extent by the FDI statutory restrictions and tax offshore regulations, rather than GVC connectivity.

Keywords: global value chains; foreign direct investment; network analysis; cross-border connectivity; simultaneous equation model (search for similar items in EconPapers)
JEL-codes: F10 F14 F15 F21 (search for similar items in EconPapers)
Pages: 29 pages including 4 Tables and 8 Figures
Date: 2021-07
New Economics Papers: this item is included in nep-fdg, nep-int, nep-net and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Published as wiiw Working Paper

Downloads: (external link)
https://wiiw.ac.at/interactions-between-global-val ... pproach-dlp-5876.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wii:wpaper:204

Ordering information: This working paper can be ordered from
https://wiiw.ac.at

Access Statistics for this paper

More papers in wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw Contact information at EDIRC.
Bibliographic data for series maintained by Customer service ().

 
Page updated 2022-08-17
Handle: RePEc:wii:wpaper:204