Author(s)

Ze Liang ¹

Affiliation(s)

¹ School of Economics, Xi'an University of Finance and Economics, Xi'an, 710100, China

Corresponding Author

Ze Liang

ABSTRACT

Amid the deep integration of traditional manufacturing and digital technologies, digital transformation has become a crucial strategic measure for China to overcome the "low-end lock" trap in manufacturing and optimize the value chain's restructuring. This paper employs input-output data from China's manufacturing industry between 2000 and 2014 to examine the correlation between input digitalisation level and China's manufacturing industry's embedding status and level in the global value chain. An empirical analysis using a multidimensional fixed-effect model reveals that as digital technology continues to mature, Chinese manufacturing enterprises have significantly improved their competitiveness in the global value chain, as evidenced by an elevated embedding level and status. Heterogeneity analysis indicates that high- and medium-technology manufacturing industries have benefited considerably from the digital technology development dividend, while low-technology manufacturing industries' excessive competitive advantage in labour has resulted in a decline in their international competitiveness with digital technology adoption. Mechanism tests suggest that input digitisation primarily enhances China's manufacturing industry's embedding level and status in the global value chain by reducing trade costs and enhancing innovation capacity.

KEYWORDS

Digitalization; global value chains; manufacturing

CITE THIS PAPER

Ze Liang, Analyzing the Impact of Digital Technology on Global Value Chain Embedding from the Perspective of Chinese Manufacturing Industry. Financial Engineering and Risk Management (2024) Vol. 7: 33-42. DOI: http://dx.doi.org/10.23977/ferm.2024.070405.

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