The Impact of Digital Trade on the Upgrading of Global Value Chains: International Evidence

This research aims to verify the direct effect and internal mechanism of digital trade on the upgrading of GVCs and put forward corresponding policy recommendations. The study takes 42 OECD countries from 2005 to 2020 as samples, constructs a digital trade evaluation index system, and carries out empirical analysis by using a two-way fixed-effect model, a mediation effect model, and a moderating effect model. The study finds that (1) digital trade has a ”U-shaped” impact on upgrading a country's global value chain. (2) Digital trade plays a critical role in upgrading GVCs mainly through three paths: enhancing total factor productivity, promoting technological innovation, and optimizing the cost structure.