Preprint Article Version 1 This version is not peer-reviewed

The Spatial Effects Study of the Digitization Level on the Deepening of National Value Chain in China:Based on the panel data of 263 cities

Version 1 : Received: 29 August 2024 / Approved: 29 August 2024 / Online: 29 August 2024 (11:34:04 CEST)

How to cite: Liu, G.; Liu, J.; Gao, J. The Spatial Effects Study of the Digitization Level on the Deepening of National Value Chain in China:Based on the panel data of 263 cities. Preprints 2024, 2024082156. https://doi.org/10.20944/preprints202408.2156.v1 Liu, G.; Liu, J.; Gao, J. The Spatial Effects Study of the Digitization Level on the Deepening of National Value Chain in China:Based on the panel data of 263 cities. Preprints 2024, 2024082156. https://doi.org/10.20944/preprints202408.2156.v1

Abstract

Under the new pattern of "Double-Cycle" economy, how to restructure the domestic economic structure to cope with the continuous softening of the global economic structure is an urgent issue. This paper empirically examines the impact of digitalization level on the division of labor in National Value Chain (NVC) within cities using panel data from 263 cities between 2001 and 2016, employing a spatial Durbin model.The study demonstrates that the digitization level can enhance division of labor in NVC in neighboring regions through spatial spillovers. An increase in digitization not only positively deepens the construction of NVC but also contributes to the development of NVC in adjacent areas.The digitization level can deepen the division of labor in NVC through the impact of cost reduction, consumption upgrading, and market integration. This effect exhibits regional variations, with consumption upgrading playing a crucial role in expanding the division of labor in NVC in the eastern region through improving digitization levels, while cost reduction is a key factor in the central region. The research results of this paper provide some empirical evidence for further progress and transition of China's NVC developing mode from the perspective of digital level.

Keywords

digitization level; National Value Chain; cost reduction; consumption upgrading; spatial spillovers

Subject

Business, Economics and Management, Economics

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