Can data factor penetration enhance global value chain resilience

Data, as a key production factor in the digital economy era, has a profound impact on global value chain (GVC) resilience. Based on measures of data-factor penetration and GVC resilience for 60 countries over 2007-2017, this paper conducts an empirical analysis. The results indicate that higher data-factor penetration significantly enhances GVC resilience, primarily by optimizing upstream-downstream linkages and lengthening cross-border production chains. Heterogeneity analysis further indicates that data factors mainly reinforce upstream resilience, while the effects vary across regions due to differences in GVC positions. Moreover, domestic and foreign data sources exert opposite influences, and allocating data inputs to digital services yields larger resilience gains than allocating them to digital products. The findings offer theoretical support and policy implications for developing countries seeking to raise data penetration and industry digitalization to strengthen GVC stability and security amid deglobalization.