arbiter
JournalsAccount

Extending Dunning’s Paradigm: The Role of Host Country Global Value Chain Position in Chinese Experimental Outward Foreign Direct Investment Location Choices

Kaiyao Wu et al.

Global Business Review2026https://doi.org/10.1177/09721509261422924article
AJG 1ABDC B
Weight
0.50

Abstract

This study extends Dunning’s location paradigm by incorporating the host country’s global value chain (GVC) position as a distinct motivation for outward foreign direct investment (OFDI). We empirically disentangle this GVC-seeking motive from strategic asset-seeking using horserace tests. Analyzing 320 Chinese OFDI events across 31 OECD countries (2005–2014), we find that higher GVC positions (GVCPs) significantly attract investment, validating our theoretical extension. Conversely, labour-seeking OFDI targets lower GVCPs, an effect moderated by host country development. Firm heterogeneity analysis reveals that the GVC-seeking effect is stronger for non-state-owned, large and technology-intensive firms. Validating with 2015–2023 data, we confirm the positive GVCP influence, though it is marginal in non-US samples and overshadowed by US geopolitical factors. Moreover, OECD GVC hierarchies remain stable (Spearman’s ρ > 0.91, 2014–2023). These findings, extendable to other emerging-market multinationals, enrich GVC and OFDI literature and offer strategic insights for China’s economic transformation.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1177/09721509261422924

Or copy a formatted citation

@article{kaiyao2026,
  title        = {{Extending Dunning’s Paradigm: The Role of Host Country Global Value Chain Position in Chinese Experimental Outward Foreign Direct Investment Location Choices}},
  author       = {Kaiyao Wu et al.},
  journal      = {Global Business Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1177/09721509261422924},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Extending Dunning’s Paradigm: The Role of Host Country Global Value Chain Position in Chinese Experimental Outward Foreign Direct Investment Location Choices

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.