The Impact of digitalization on the position of Chinese manufactures in the Global Value Chain

The industrial digitalization brought about by the digital economy has become an important way for China's manufacturing industry to realize the climb of the value chain. This paper deeply discusses the role mechanism of China's manufacturing digitalization on the division of labor in the global value chain. Based on the ADB (2021) and WTOD (2016) databases from 2000-2020, the consumption of digital information and communication technology is used to calculate the industrial digitalization level index of China's 13 submanufacturing industries;In addition, the global value chain of manufacturing is established through the division of labor dimension, dominant comparative advantage dimension (RCA) dimension and production length dimension. Based on theoretical and mathematical analysis, this paper uses two-way fixed effect model for empirical test, the study shows that the effect of industrial digitalization on the global value chain of manufacturing industry is enhanced with the improvement of scientific research level and labor productivity, and considers the intensity of different elements of manufacturing industry and the heterogeneity of industrial digitalization.

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Published
2024-09-20
DOI
https://doi.org/10.1145/3705618.3705626
Primary Topic
Economic and Technological Innovation
Type
article
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The Impact of digitalization on the position of Chinese manufactures in the Global Value Chain

Ji Zhang, Q. J. Li
Economic and Technological Innovation
article

The Impact of digitalization on the position of Chinese manufactures in the Global Value Chain

Ji Zhang, Q. J. Li
article en

Abstract

The industrial digitalization brought about by the digital economy has become an important way for China's manufacturing industry to realize the climb of the value chain. This paper deeply discusses the role mechanism of China's manufacturing digitalization on the division of labor in the global value chain. Based on the ADB (2021) and WTOD (2016) databases from 2000-2020, the consumption of digital information and communication technology is used to calculate the industrial digitalization level index of China's 13 submanufacturing industries;In addition, the global value chain of manufacturing is established through the division of labor dimension, dominant comparative advantage dimension (RCA) dimension and production length dimension. Based on theoretical and mathematical analysis, this paper uses two-way fixed effect model for empirical test, the study shows that the effect of industrial digitalization on the global value chain of manufacturing industry is enhanced with the improvement of scientific research level and labor productivity, and considers the intensity of different elements of manufacturing industry and the heterogeneity of industrial digitalization.

Henan University of Science and Technology (CN)
Openalex Percentile: Top 70%
Economic and Technological Innovation
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