Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/240647
Authors: 
Adarov, Amat
Year of Publication: 
2021
Series/Report no.: 
wiiw Working Paper No. 204
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
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.
Subjects: 
global value chains
foreign direct investment
network analysis
cross-border connectivity
simultaneous equation model
JEL: 
F10
F14
F15
F21
Document Type: 
Working Paper

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