2022 Fiscal Year Research-status Report
The Impact of Global Value Chain Participation on Attracting Greenfield FDI: A Sectoral Analysis
| Project/Area Number |
22K01455
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| Research Institution | Yokohama National University |
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Principal Investigator |
C・R Parsons 横浜国立大学, 大学院国際社会科学研究院, 教授 (10334616)
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| Project Period (FY) |
2022-04-01 – 2025-03-31
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| Keywords | FDI / GVCs / industry |
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| Outline of Annual Research Achievements |
In the first year of this grant, we have assembled industry level GVC data from the OECD and matched it with detailed FDI data from the Financial Times FDI database to create a global sample. We then conducted some preliminary econometrics results which confirm that there is, indeed, a relationship between higher GVC participation and inward FDI. We found, importantly, that these results differ across industries and regions. We have received very helpful feedback at presentations in international conference and seminars. However, results are still not ready for publication. Further work needs to be done.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
Data collection and preliminary econometric results are all proceeding satisfactorily. However, we have a serious problem of reverse-causality (endogeneity) which we are attempting to resolve. We have received some helpful suggestions at various conferences and workshops, but still have not found the ideal solution (i.e. the ideal instrumental variable) yet.
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| Strategy for Future Research Activity |
We plan to continue to search for ideal external data which may serve as a instrument to solve for our problem of reverse-causality. Also, we have discovered that our results are very sensitive to the inclusion or exclusion of China in the sample. We are working hard on both aspects to sharpen our preliminary results. We will need to present our new work in more conferences and seminars to gain valuable feedback and ideas.
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| Causes of Carryover |
Travel and article costs did not precisely match expectations.
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