ABSTRACT
It empirically examines the impact of the digital transformation of Global Value Chains (GVCs) on the high-quality development of China's manufacturing industry and its underlying mechanisms, based on panel data from Chinese manufacturing sectors from 2001 to 2019. The study first constructs a comprehensive evaluation system for high-quality development in manufacturing, covering five dimensions: innovation, green development, openness, shared benefits, and coordination, with indicator weights determined using the CRITIC method. Meanwhile, the level of GVC digitalization is measured based on input–output data. Benchmark regression results show that the enhancement of GVC digitalization significantly promotes the high-quality development of manufacturing, a conclusion that remains robust after a series of tests, including replacing the explained variable, applying instrumental variable methods, and lagging explanatory variables. Heterogeneity analysis reveals that the promoting effect of digitalization is more pronounced in industries with low R&D intensity and labor-intensive industries. Further mechanism tests indicate that the digital transformation of GVCs mainly drives the high-quality development of manufacturing through three channels: reducing transaction costs, promoting technological innovation, and optimizing resource allocation efficiency. This chapter provides empirical evidence for understanding the role of digitalization in GVCs and its impact on the upgrading of the manufacturing sector.
