1. industrial structure upgrading effect
Through overseas investment, multinational companies bring some late-developing enterprises from the host country into their vertical specialized industrial chains, which is a good opportunity for the enterprises from the host country to absorb experience and accumulate learning effects. From the effect of learning by doing, the global value chain division of multinational corporations is helpful to improve the domestic human capital of late-developing host countries, improve the knowledge and management skills of domestic enterprises, and thus lay the human capital foundation for the optimization and upgrading of the industrial structure of late-developing host countries. With the extension of the value chain division of multinational companies to countries with more labor cost advantages, the late-developing host enterprises will gradually change their original products from labor-intensive to capital-intensive or technology-intensive due to the increase of industrial knowledge and technology content, resulting in factor reversal effect, promoting the optimization and upgrading of industrial structure, and promoting the upgrading and development of other related industries through technology spillover effect.
2. The creative effect of foreign trade
At present, the vertical specialized production trade generated by the value chain division represented by multinational companies has occupied a large proportion of international trade, while the traditional product trade between countries is shrinking, which shows that the level of international trade has shifted from final products to intermediate inputs, and the essence of trade has shifted from trading for trade to trading for production. The evolution of global trade supply and demand chain from "regional division structure" in geographical era to "global hub interaction structure" in network era shows that in the global circuitous production network, the global value chain division of multinational companies has a natural connection with the international economy, and multinational companies bring their economic links such as supply and marketing channels, product research and development, market and credit relations to the late-developing host countries, creating trade creation effects of products import and export of foreign-funded enterprises and their domestic supporting enterprises. This foreign trade creation effect not only earns foreign exchange for the late-developing host country, optimizes the export commodity structure and geographical trend, relieves the employment pressure, but also promotes the institutional change and the development of export-oriented economy in the late-developing host country.
3. Effect of national economic growth
Under the framework of Solow's growth model, multinational companies' investment in the host country due to the division of value chain can be regarded as an increase in the stock of production factors in the host country, which is not much different from domestic production factors and can promote the economic growth of the host country in the short term; In the new growth theory system that introduces endogenous technological change factors such as knowledge and human capital, the value chain division of multinational companies will also promote the economic growth of late-developing host countries in the short and long term through mechanisms such as human capital, public infrastructure, innovation incentives and technology diffusion. At this time, the growth effect brought by the global value chain division of multinational companies can be considered as the organic combination of capital stock, technical know-how and related technologies, which can affect the economic growth of the host country in different ways; In the theory of new institutional economics, a large number of important institutions can be written as variables of economic growth function. The division of labor in the value chain of multinational corporations affects the institutional factors of the host country from the demand and supply of more effective institutional performance, which leads to the institutional change effect of the host country. If this institutional change is effective, it will be beneficial to the economic growth of the host country.
(B) multinational global value chain division of labor on the negative obstacles to the late host country
1. Crowding out effect of talent flow
Multinational companies spread and transplant in related industries through the key links of global value chain, make full use of intellectual resources and human capital of various countries, and improve their competitive advantages. Multinational companies take a fancy to the technical management talents and technical labor with relatively low cost in the host country, and take advantage of the demonstration effect of relatively high wages to produce the agglomeration effect of a large number of human capital and technical labor flowing to the subsidiaries established by multinational companies in the host country, which not only increases the operating costs of the host country enterprises, but also leads to the serious talent crowding out effect of the host country enterprises. For the host country, the establishment of R&D institutions by multinational corporations in the host country is beneficial to the host country to enjoy the benefits of technology diffusion, but it may lead to the loss of a large number of scientific and technological talents and senior management talents from domestic enterprises and scientific research institutions to subsidiaries of multinational corporations.
2. Technology core peripheral effect
In the global value chain division of multinational companies, although multinational companies have brought relatively advanced production equipment, product R&D and manufacturing technology and efficient management experience, which is conducive to the accumulation of "experience effect" by late-developing host country enterprises, thus promoting product renewal and technological progress, multinational companies often adopt selective and binding technical strategies to the host country and strictly control key core technologies, so it is difficult for host country enterprises to successfully imitate or gain little from imitation. However, the subordinate factories and institutions in the host country can only produce peripheral low-level intermediate products and spare parts, and cannot touch more complex and advanced manufacturing technologies and processes. At the same time, due to the loss of a large number of scientific and technological talents to the local R&D institutions of multinational companies, not only may it not bring advanced diffusion technology to the host country, but it may take away a large number of basic research achievements accumulated before, which will be used by multinational companies to produce the reverse spillover effect of technology, [4] thus technically producing the core-periphery effect between multinational companies and host country enterprises.
3. Factor price convergence effect
In the process of promoting the division of labor in the global value chain, multinational companies need to integrate and allocate economic resources and elements on a global scale. Economic resources and production factors that are relatively abundant in the host country but relatively scarce in the home country and other countries of multinational corporations will show an upward trend due to the increase in demand of multinational corporations in the host country market, while economic resources and production factors that are relatively scarce in the host country but relatively abundant in the home country and other countries will show a downward trend due to the increase in import supply of multinational corporations in the host country market. In the mainframe market, the prices of raw materials, intermediate products and skilled labor, which were relatively abundant and cheap before, will rise; The prices of raw materials, intermediate products and capital, which were relatively scarce and expensive before, were reduced by the global value chain division of multinational companies imported from other countries with comparative advantages, which produced a relatively strong factor price convergence effect and further suppressed the competitive advantage and market space of late-developing host country enterprises.
4. The low-end effect of value distribution
Multinational companies divide their work according to the best and non-local best angles of the whole global value chain, and almost all matching factors, such as strategic positioning, design and upgrading of products and services, manufacturing methods, marketing, value-added services, brands, upstream and downstream enterprise clusters, resource outsourcing, industrial dependence, etc. So as to overcome the incompleteness of the product market and reduce the transaction cost through the company's internalization strategy. In order to maximize profits, multinational companies try to create an internal market and internalize products within their organizational system through internal "transfer price" strategy, which not only minimizes the tax expenditure of the host country, but also forcibly encroaches on the interests of enterprises in the cooperative host country, thus leading to the low-end effect of value distribution in the late host country.