Global value chains and inward foreign direct investment in the 2000s

In this paper, we make use of recent data published by the World Input-Output Database to: (i) provide evidence on trade in value added of the major Organization for Economic Co-operation and Development (OECD) member countries and major emerging economies (designated by OE country group), namely by measuring the degree of participation in global value chains (GVCs) at the country and sectoral levels; and (ii) estimate whether the GVC participation of OE countries has positively influenced foreign direct investment (FDI) inward stocks in the 2000s. The pooled regression model estimated shows that the country ' s degree of GVC participation has contributed positively for bilateral FDI inward stocks, after controlling for other possible FDI determinants.