Zhou, JingLatorre Muñoz, María De La ConcepciónCosta, A. M.Salvatore, D.2024-01-312024-01-312021-12Zhou, Jing and Latorre, María C., (2021), FDI in China and global production networks: Assessing the role of and impact on big world players, Journal of Policy Modeling, 43, issue 6, p. 1225-12400161-893810.1016/j.jpolmod.2021.05.001https://hdl.handle.net/20.500.14352/97433How can countries successfully engage in global production networks? We provide a Computable General Equilibrium analysis of the impact of FDI on global production networks in Textiles, Chemicals, Electronics and Machinery, dividing the world economy in six regions (China, East Asia, Japan, EU28, the U.S. and the group of Emerging and Developing Economies). Interestingly for the policy maker, although the four sectors have contrasting production technologies, their Chinese exports and imports still follow a similar trend: East Asia and Japan are Chinese main intermediate suppliers while the US, Europe and the Emerging and Developing Economies play more the role of final markets. FDI inflows have benefitted China and we quantify by how much they have raised Chinese wages, GDP, national income and export competitiveness. By contrast, being an intermediate supplier or playing mostly the role of big final market in the network is not enough to succeed in your integration with China. The extent of the (positive or negative) effects is very much related to whether the structure of production (i.e., sectors’ weight in GDP) of the different economies is similar to (and therefore more easily crowded out by) Chinese booming sectors. © 2021 The Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.engAttribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/journal articlehttps://doi.org/10.1016/j.jpolmod.2021.05.001https://www-sciencedirect-com.bucm.idm.oclc.org/science/article/pii/S0161893821000648open access339330.43336C68F14F15F17F21FragmentationVertical integrationValue chains;Imported intermediatesMultinationalsComercioEconometría (Estadística)Economía internacionalFinanzas5312.11 Comercio5302 Econometría5310 Economía Internacional