Digital economy and global value chain restructuring from a cross-country sustainable industry analysis

The unprecedented expansion of the digital economy is fundamentally altering the architecture and operational dynamics of global value chains (GVCs). This study investigates the impact of digital economy development on the restructuring of GVCs. This analysis develops a theoretical framework and employs empirical analysis utilising cross-country industry data. These findings show that digital economy development catalyses GVC restructuring. This restructuring is mainly reflected in changes in network positions within GVCs, with notable heterogeneity across industries, input origins, and country classifications. Mechanism analysis shows that the digital economy promotes the restructuring of GVCs by improving production efficiency and innovation capabilities.