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Research on the Impact of the Input Level of Digital Economics in Chinese Manufacturing on the Embedded Position of the GVC

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  • Guangwei Rui

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
    Beijing Laboratory of National Economic Security Early-Warning Engineering, Beijing Jiaotong University, Beijing 100044, China)

  • Menggang Li

    (Beijing Laboratory of National Economic Security Early-Warning Engineering, Beijing Jiaotong University, Beijing 100044, China)

Abstract

With the development and application of digital technology, the digital economy industry has gradually become the new vitality of China’s economic growth, and it has also become a vital driving force to promote a change in the GVC division of the manufacturing industry. This paper takes the embedded position of the GVC in the Chinese manufacturing industry as the research object, places the input level of the digital economy in the manufacturing industry into the analysis framework of the influence of its embedded position in the GVC, puts forward the theoretical mechanism of the influence of the input level of the digital economy on the relative breadth and height of its embedded position in the GVC, and explores the influence of the digital economy on the embedded position of the GVC in the Chinese manufacturing industry from the two levels of relative height and width. Through regression analysis, an intermediary effect test, and threshold regression of panel data, the study found that (1) improving the input level of the digital economy in manufacturing will positively affect the relative height and breadth of the GVC embedding position. (2) The improvement of the input level of the digital economy plays a role through two mechanisms: improving the innovation efficiency of the manufacturing industry, and improving the asset utilization efficiency of the manufacturing industry. The relative height and breadth of the embedded position of the GVC can be promoted through innovative efficiency channels. The captive allocation efficiency channel can promote the relative breadth of the embedded position of the GVC. (3) The influence of the input level of the digital economy on the relative breadth and height of the embedded position of the GVC presents a threshold effect with the technical level, and the influence on the relative height presents a threshold effect with the capital level. By clarifying the influence of the digital economy’s input level on the embedded position of the GVC, some suggestions can be taken to promote the manufacturing industry to move to a high-value acquisition position in the GVC division. Construction can be strengthened from the following aspects: improving the application level of digital technology in the manufacturing industry, strengthening the construction of digital infrastructure, and promoting the innovation system and industrial ecology led by digital technology.

Suggested Citation

  • Guangwei Rui & Menggang Li, 2023. "Research on the Impact of the Input Level of Digital Economics in Chinese Manufacturing on the Embedded Position of the GVC," Sustainability, MDPI, vol. 15(16), pages 1-26, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12468-:d:1218618
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    References listed on IDEAS

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