Abstract: With the continuous advancement of building a unified national market and the strategic goal of a strong manufacturing country, China urgently needs to promote cross-border capital flows to enhance the siphoning capacity of global factor resources, thus breaking the key blockage of the manufacturing industry’s NVC and the GVC cycle of collaboration, however, at present there is a lack of OFDI to promote the inter-provincial manufacturing industry dual value chain embedded in the relevant theoretical analysis and empirical research. Based on the construction of embedded input-output tables in 2012, 2015 and 2017, this paper measures the value chain dual embeddedness indicators at the provincial sectoral level, and further empirically examines the impact of China’s OFDI on the dual embeddedness of the manufacturing value chain. The results show that, firstly, there is a significant promotion effect of OFDI on manufacturing value chain dual embeddedness. Secondly, the results of the heterogeneity test show that the impact of OFDI on the forward dual embeddedness of the manufacturing value chain is more significant, the impact of OFDI on the dual embeddedness of the manufacturing value chain is more significant in central and western regions, and the impact of OFDI in high-technology-intensive industries on the dual embeddedness of the manufacturing value chain is more significant. Thirdly, OFDI promotes manufacturing value chain dual embeddedness mainly by promoting technological progress and human capital level enhancement. Fourth, the spatial extensibility analysis found that the increase in the level of OFDI in other provinces and the increase in the level of dual embeddedness in the manufacturing value chain both contribute to the increase in the level of dual embeddedness in the manufacturing value chain in this province.

Key words: OFDI, dual Embeddedness of the value Chain, manufacturing industry, spatial spillover effect