Abstract
The existing literature finds that digital trade regulations have a detrimental impact on digital service. However, limited attention has been devoted to the impact of digital trade regulations on the manufacturing position in the global value chain. Drawing upon data covering 17 manufacturing industries in 54 economies from 2014 to 2018, we find that regulatory disparities in the digital trade lower the manufacturing position in the global value chain. In addition, this negative impact is bigger in industries characterized by high levels of digitization, servitization, intelligence, and productivity. Moreover, we evidence that the negative effect is bigger in developing economies, and is higher in economies with the underdeveloped digital infrastructure.
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