Research on the Impact of Digital Trade on the Reconstruction of Global Value Chains —An Empirical Analysis Based on Cross-national Panel Data

Abstract

With increasing refinement in production, advancements in information technology, and optimized transport, enterprise value chains have become global. This international division of labor based on Global Value Chains (GVCs) has driven economic growth but also caused issues like income disparity and status inequality. Developed countries aim to maintain dominance in GVCs, while developing countries seek greater participation and advancement within them. For developing nations, breaking the “low-end lock” in GVCs is crucial. This paper empirically examines the complex relationship between digital trade and global value chain reconstruction, and explores the moderating effect of institutional environmental factors on the above relationships. This enriches the research perspective and expands the research at the intersection of digital trade and value chain. Findings suggest that digital trade affects China’s position and participation in global value chains, with institutional quality and economic freedom moderating these effects. This research contributes to understanding the complex dynamics of digital trade and value chain reconstruction, highlighting China’s potential to ascend the global value chain through digital trade development.