Based on the driven mode and the form of labor division, the two paths that\naffect the evolution of the host countryâ??s manufacturing industry GVC, this\npaper constructs a mechanism on their impacts on Chinaâ??s OFDI location\nstrategy, and then verifies the theoretical hypotheses by taking Chinaâ??s OFDI\nstock across 26 EU member states and 13 manufacturing sub-industries during\n2003 to 2014 as the sample. The empirical results obtained by comprehensive\nGeneralized Least Squares (GLS) estimation show that, from the perspective\nof the GVC driven model, the high-tech level, rich human capital under\nthe producer-driven model, and huge market potential based on buyer-\ndriven mode are important factors affecting Chinaâ??s OFDI location choice\nacross EU member states. From the perspective of GVC labor division, the\nhigher vertical specialization and host countryâ??s GVC status of manufacturing\nsub-industry attract the inflow of Chinese investments.
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