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Digitalization of services, Innovation and manufacturing GVC upstreamness

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  • Bian, Ruimin
  • Fan, Zhaobin

Abstract

This study investigates the impact of the service sector digitalization on the upstream positioning of manufacturing industries within the Global Value Chains (GVCs). The empirical analysis is conducted using the data from 65 countries (regions) and 17 manufacturing sectors during the period 2000–2018. The findings suggest that the digitalization of service sector contributes to the upward evolution of manufacturing industries within the GVCs by stimulating technological innovation among manufacturing firms. This effect is more pronounced in labor-intensive manufacturing industries, peripheral countries, and the “snake-type” GVC pattern. The robustness of the findings is confirmed by a series of tests, including an examination of the endogeneity issue.

Suggested Citation

  • Bian, Ruimin & Fan, Zhaobin, 2024. "Digitalization of services, Innovation and manufacturing GVC upstreamness," Technology in Society, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:teinso:v:78:y:2024:i:c:s0160791x24002082
    DOI: 10.1016/j.techsoc.2024.102660
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    More about this item

    Keywords

    Service digitalization; Manufacturing industries; Technological innovation; GVC upstreamness;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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