Has digital technology promoted the restructuring of global value chains? Evidence from China

Abstract

Reconstruction is necessary for the GVC in the digital age. This paper examines the impact of digital technology input on China's participation in the reconstruction of the global value chain. The relative position of the GVC and the degree of bilateral cooperation in the GVC were constructed as an index to measure a country's participation in the reconstruction of the global value chain from a bilateral perspective. The study found that investment in digital technology has a significant positive impact on China's relative standing in the GVC and the level of bilateral cooperation within the GVC. Additional heterogeneity analysis demonstrates that digital technology input in capital-intensive industries has a more pronounced effect on China's participation in the reconstruction of the global value chain. The aforementioned promotion effects are amplified when developed economies and economies with a high level of financial development serve as trading partners. Examining the OBOR sample further reveals that the aforementioned promotion effects are similarly significant. Examining the mechanism reveals that digital technology input promotes China's participation in the reconstruction of the global value chain via two channels: increasing the export scale of high-tech products and exporting domestic added value.