GLOBAL VALUE CHAIN OR NATIONAL VALUE CHAIN——Research on the Chain Choosing Mechanism of Chinese OEMs

Chinese OEMs receive very little profit which are captured by MNC in the global value chain(GVC),and they can't get their own brands and key technologies,so it is difficult for them to upgrade in the chain.Choosing the national value chain(NVC)is an important way for OEMs to break through the blockage on technology and brand by MNC and achieve their chain upgrading.This paper builds a model of OEM operating under GVC and NVC,analyzes the equilibrium profit of OEM and its influencing factors under GVC and NVC.We conclude that the scale of local demand and the effect of digging,the effect on operating cost by OEM experience and fixed investment,and the international and domestic industrial environment are crucial factors which have an impact on the decision of choosing GVC or NVC.We also undertake a case study to prove our theoretical analysis.