Reshaping the Global Value Chain Division of Labor under the Digital Economy

Research Article
Open access

Reshaping the Global Value Chain Division of Labor under the Digital Economy

Liwei Chiang 1*
  • 1 University of North Carolina at Chapel Hill    
  • *corresponding author j18027419812@163.com
AEMPS Vol.192
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-195-2
ISBN (Online): 978-1-80590-196-9

Abstract

Based on the theoretical framework of global value chains (GVCs), this paper examines the mechanisms through which the digital economy reshapes global value chains. The study finds that the digital economy significantly alters the geographical distribution patterns of traditional GVCs by reducing transaction costs and enhancing the mobility of production factors. The application of digital technologies has increased the added value of midstream manufacturing segments, thereby transforming the "smiling curve" into a "shallow smiling curve." Moreover, the cross-border flow of data elements has given rise to new types of service-oriented value chains, offering developing countries a novel pathway to move up the value chain. This study provides a theoretical foundation for understanding the new characteristics of GVCs in the digital economy era and offers valuable insights for developing countries in formulating digital economy development strategies.

Keywords:

Digital Economy, Global Value Chain, Division of Labor and Cooperation

Chiang,L. (2025). Reshaping the Global Value Chain Division of Labor under the Digital Economy. Advances in Economics, Management and Political Sciences,192,80-88.
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References

[1]. Yao, Q. (2023). Definition, measurement, and China–U.S. comparison of the digital economy. China Banking Industry, (09), 44–47+6.

[2]. Wu, J., & Guo, Y. (2024). Digital economy boosts the development of new urbanization: An analysis based on the spatial Durbin model and threshold model. Resource Development & Market, 40(09), 1350–1361.

[3]. Shao, Y., Hua, J., & Li, B. (2024). Empowering effects and mechanisms of the digital economy on integrated urban–rural development. Research of Agricultural Modernization, 45(03), 477–487.

[4]. Li, B., et al. (2021). Value circulation, economic structure, and the new development pattern: A political economy theoretical framework and international comparison. Economic Research Journal, (5).

[5]. Shen, K., & Ding, L. (2024). The digital economy reshaping the economic circulation model: Theoretical logic and pathways. Journal of Sichuan University (Philosophy and Social Science Edition), (01), 30–36+207–208.

[6]. Zou, X., Tong, N., & Min, J. (2024). Research on the impact of the digital economy on circulation efficiency. China Business Theory, (10), 1–6. https://doi.org/10.19699/j.cnki.issn2096-0298.2024.10.001

[7]. Wang, D. (2024). The impact of the digital economy on the consumer market and countermeasures. Modern Business Research, (20), 23–25.

[8]. Wang, F. (2017). Global value chains, skill learning, and innovation [Doctoral dissertation, Nanjing University].

[9]. Wang, Y. (2020). Digital innovation and the transformation of global value chains. Tsinghua Management Review, (03), 52–58.

[10]. Zhang, Z., Xiong, H., & Chen, Q. (2019). The evolution and influencing factors of cooperation models in global value chains: Empirical evidence from China and BRICS countries. Industrial Economics Research, (03), 77–87. https://doi.org/10.13269/j.cnki.ier.2019.03.007

[11]. Kaplinsky, R. (2000). Globalization and unequalisation: What can be learned from global value chain analysis? Sloan Management Review.

[12]. Research Group of the Current Account Management Department, Nanjing Branch of the People’s Bank of China, & Cao, Q. (2021). Research on the reconstruction of global value chains from the perspective of digital trade. Financial View, (05), 30–36.

[13]. Guo, Z., & Qiu, Y. (2020). Reconstruction of global value chains in the era of the digital economy: Stylized facts, theoretical mechanisms, and China’s strategy. Reform, (10), 73–85.

[14]. Zhang, J. (2021). Innovative approaches to reshaping global value chains through digital trade. Xinjiang Social Sciences, (03), 48–59+166.

[15]. He, Y. (2022). Digital economy, factor endowments, and global value chain competition: Theoretical mechanisms and China’s countermeasures. Journal of Xi’an University of Finance and Economics, 35(06), 27–39. https://doi.org/10.19331/j.cnki.jxufe.2022.06.003


Cite this article

Chiang,L. (2025). Reshaping the Global Value Chain Division of Labor under the Digital Economy. Advances in Economics, Management and Political Sciences,192,80-88.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of ICMRED 2025 Symposium: Effective Communication as a Powerful Management Tool

ISBN:978-1-80590-195-2(Print) / 978-1-80590-196-9(Online)
Editor:Lukáš Vartiak
Conference date: 30 May 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.192
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Yao, Q. (2023). Definition, measurement, and China–U.S. comparison of the digital economy. China Banking Industry, (09), 44–47+6.

[2]. Wu, J., & Guo, Y. (2024). Digital economy boosts the development of new urbanization: An analysis based on the spatial Durbin model and threshold model. Resource Development & Market, 40(09), 1350–1361.

[3]. Shao, Y., Hua, J., & Li, B. (2024). Empowering effects and mechanisms of the digital economy on integrated urban–rural development. Research of Agricultural Modernization, 45(03), 477–487.

[4]. Li, B., et al. (2021). Value circulation, economic structure, and the new development pattern: A political economy theoretical framework and international comparison. Economic Research Journal, (5).

[5]. Shen, K., & Ding, L. (2024). The digital economy reshaping the economic circulation model: Theoretical logic and pathways. Journal of Sichuan University (Philosophy and Social Science Edition), (01), 30–36+207–208.

[6]. Zou, X., Tong, N., & Min, J. (2024). Research on the impact of the digital economy on circulation efficiency. China Business Theory, (10), 1–6. https://doi.org/10.19699/j.cnki.issn2096-0298.2024.10.001

[7]. Wang, D. (2024). The impact of the digital economy on the consumer market and countermeasures. Modern Business Research, (20), 23–25.

[8]. Wang, F. (2017). Global value chains, skill learning, and innovation [Doctoral dissertation, Nanjing University].

[9]. Wang, Y. (2020). Digital innovation and the transformation of global value chains. Tsinghua Management Review, (03), 52–58.

[10]. Zhang, Z., Xiong, H., & Chen, Q. (2019). The evolution and influencing factors of cooperation models in global value chains: Empirical evidence from China and BRICS countries. Industrial Economics Research, (03), 77–87. https://doi.org/10.13269/j.cnki.ier.2019.03.007

[11]. Kaplinsky, R. (2000). Globalization and unequalisation: What can be learned from global value chain analysis? Sloan Management Review.

[12]. Research Group of the Current Account Management Department, Nanjing Branch of the People’s Bank of China, & Cao, Q. (2021). Research on the reconstruction of global value chains from the perspective of digital trade. Financial View, (05), 30–36.

[13]. Guo, Z., & Qiu, Y. (2020). Reconstruction of global value chains in the era of the digital economy: Stylized facts, theoretical mechanisms, and China’s strategy. Reform, (10), 73–85.

[14]. Zhang, J. (2021). Innovative approaches to reshaping global value chains through digital trade. Xinjiang Social Sciences, (03), 48–59+166.

[15]. He, Y. (2022). Digital economy, factor endowments, and global value chain competition: Theoretical mechanisms and China’s countermeasures. Journal of Xi’an University of Finance and Economics, 35(06), 27–39. https://doi.org/10.19331/j.cnki.jxufe.2022.06.003