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 AJIBM  Vol.10 No.2 , February 2020
Research on China’s OFDI Location Strategy in EU from the Perspective of Host Country Manufacturing Industry GVC Evolution
Abstract: Based on the driven mode and the form of labor division, the two paths that affect the evolution of the host country’s manufacturing industry GVC, this paper constructs a mechanism on their impacts on China’s OFDI location strategy, and then verifies the theoretical hypotheses by taking China’s OFDI stock across 26 EU member states and 13 manufacturing sub-industries during 2003 to 2014 as the sample. The empirical results obtained by comprehensive Generalized Least Squares (GLS) estimation show that, from the perspective of the GVC driven model, the high-tech level, rich human capital under the producer-driven model, and huge market potential based on buyer-driven mode are important factors affecting China’s OFDI location choice across EU member states. From the perspective of GVC labor division, the higher vertical specialization and host country’s GVC status of manufacturing sub-industry attract the inflow of Chinese investments.
Cite this paper: Yu, P. and Chen, Q. (2020) Research on China’s OFDI Location Strategy in EU from the Perspective of Host Country Manufacturing Industry GVC Evolution. American Journal of Industrial and Business Management, 10, 315-326. doi: 10.4236/ajibm.2020.102020.
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