Abstract

Transforming from “scale growth” to “structural optimization”，from low value-added rate process to high value-added rate process，from using low quality factor intensively to using high quality factor intensively are the urgent problems that China's exports need to solve at this stage. When exports go up，China's outward foreign direct investment（OFDI） has also ranked 3rd in the world，while outward foreign direct investment is an important way of cross-national economic cooperation and plays the roles of acquiring technology，transferring industry and distributing production process around the world. Against this background，the relationship between China's OFDI and its exports has drawn wide attention. However，the effects of OFDI on value-added in export is not been thoroughly studied in the existing literatures. Under the division of labor system of global value chain，value-added in exports means that the domestic value contribution in the whole export value，which is the accurate measurement of domestic product export，meanwhile the labor structure and technology embodied in value-added in export can reveal the upgrading of export. This book provides clues of China transforming from “big trading country” to “strong trading country” from OFDI perspective，by studying the relationship of OFDI and value-added in export from the angle of scale，industry structure，labor structure and technology content.

This book analyzes how OFDI affects the scale and industry structure of value-added in exports and finds that the horizontal OFDI and vertical OFDI impact value-added in exports differently. Further，we use the panel data of 19 host countries to test the theoretical hypothesis. Both horizontal and vertical OFDI can significantly promote value-added in exports.The horizontal OFDI flowing to developing countries and the vertical OFDI flowing to developed countries have more lasting effects.By reducing the dependence on resource inputs and improving the contribution of producer services，the horizontal OFDI can enhance the structure of value-added in exports.The vertical OFDI could stimulate the growing of headquarter service in home country and improve the rate of advanced producer services in value-added in exports.

Further，we analysis the impacts of outward foreign direct investment on the labor structure embodied in export by building a theory model based on Feenstra and Hanson（1995）. By using China's OFDI and labor structure embodied in export，we found that China's OFDI reduced the skilled-labor ratio embodied in export. Specifically，the global-value-chain transfer effect of OFDI that opposite to specialization gradient reduced the high-skilled labor ratio embodied in export，while its reverse technology spillover effect increased high-skilled labor ratio. Meanwhile the global-value-chain transfer effect of OFDI that along the specialization gradient can improve the skilled-labor ratio embodied in export，but its technology spillover effect may hamper the enhancing of labor structure embodied in export.

Additionally，we analyze the effect of OFDI on technology content embodied in export（TIE） from technology effect，production structure effect and export amount effect by presenting a calculating framework and calculating the technology content of China's export to 84 countries using WIOD data. This book finds that China's OFDI improves TIE through three channels including technology effect，product structure effect and export amount effect，meanwhile the positive effect of OFDI on TIE of intermediate export is prominent. Besides，OFDI with different motivation have different impacts on TIE.

Key words：Outward Foreign Direct Investment；Value-added in export；Sector structure embodied in export；Labor structure embodied in export；Technology embodied in export