IIS(International Investment Studies)
Policy Brief No.201523
November 11, 2015
China’s OFDI Contributes to the Enhancement of Regional
Competitiveness along the Belt and Road
Li Guoxue
Since global financial crisis, the world economy has slowed down. It is an urgent problem to promote global economic recovery and enhance regional competitiveness. The Diamond Model proposed by Michael Porter provides an important clue about how to enhance regional competitive advantages. Through the extension of production chains driven by OFDI, China participates in "One Belt One Road (OBOR)" and the Investment Plan for Europe, and promotes Eurasian cooperation in factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. Based on synergies between "One Belt One Road" initiative and the Investment Plan for Europe, a Regional Diamond Model with OBOR Characteristics comes into being which lays the foundation for Eurasian prosperity and stability in the long term.
Keywords: Diamond Model of NCA, Outward FDI, the Belt and Road, the Investment Plan for Europe
1. Introduction
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2. Regional Diamond Model with OBOR Characteristics
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Figure 1 Diamond Model of National Competitive Advantage
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Figure 2 Regional Diamond Model with OBOR Characteristics
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3. The Driving Forces for OBOR Diamond Model
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4. China’s OFDI and the Development of OBOR Diamond Model
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5. Concluding Comments
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