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The Impact of Digital Trade on China’s Position in the GVC: An Empirical Analysis Based on Sino-Russian Cross-Border Panel Data

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  • Zezhong Zhao

    (Economics School, Jilin University, Changchun 130012, China)

  • Guifu Gao

    (Economics School, Jilin University, Changchun 130012, China)

Abstract

This study analyzes OECD input–output data and UNCTAD database information to assess the impact of Sino-Russian digital trade on China’s position in the global value chain (GVC). The findings indicate that digital trade between China and Russia enhances China’s GVC status, especially in technology-intensive manufacturing sectors, while its impact is less pronounced in non-technology-intensive sectors. The digitalization level of the service industry significantly influences its effectiveness, with stronger effects in sectors that are less digitally mature. Mechanism analysis reveals that Sino-Russian digital trade boosts GVC positions through effective technology transfer, increased capital stock, and optimized human resources. Based on theoretical and empirical analyses, deepening the digitization of the manufacturing sector, expanding the layout of digital industries, strengthening Sino-Russian digital trade cooperation, and promoting the development of a digital “Belt and Road” initiative are beneficial for enhancing China’s position in the GVC and enhancing overall prosperity. These strategies not only enhance global competitiveness but also contribute to the broader goals of sustainable development by fostering economic resilience and innovation.

Suggested Citation

  • Zezhong Zhao & Guifu Gao, 2024. "The Impact of Digital Trade on China’s Position in the GVC: An Empirical Analysis Based on Sino-Russian Cross-Border Panel Data," Sustainability, MDPI, vol. 16(13), pages 1-22, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5493-:d:1423995
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    References listed on IDEAS

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    Keywords

    China; Russia; digital trade; GVC;
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