Digital Technology Application And Service Industry's Participation In The Global Value Chai

The emergence and development of digital economy has injected new vitality for countries to improve their economies.Digital technology,as the core force of digital economy,has been continuously upgraded and innovated in its content.With the accelerated development of digital technology,the scope and scale of its application are expanding.Through the wide application of digital technology,the global value chain is being rapidly reconstructed,and more and more countries are participating in the transnational production chain by realizing "digitalization of industry" and "digital industrialization",gradually increasing their participation in global production and occupying a larger share of international production.In addition,the service industry has the characteristics of intangibility,which makes the application of digital technology has a more significant impact on its participation in the division of labor in the global value chain,compared with the manufacturing industry.Therefore,the paper focuses on exploring how the application of digital technology can contribute to the participation in the global value chain division of labor in the service industry.In the dissertation,the GVCs production length index constructed by Wang et al.(2017b)was adopted.Based on the database of the Global Value Chain Research Institute of the University of International Business and Economics,the production length index of overall GVCs,simple GVCs production length index and complex GVCs production length index were selected as the explanatory variables.According to the WIOD database,38 countries were selected as sample countries,and 16 industries were selected as service sector segments.Based on the world bank database,conference and development conference database,select Internet penetration,mobile phone usage to quantify digital technology application,as the core explanatory variable,select per capita gross domestic product,foreign direct investment,foreign investment,trade in services,trade in goods as a control variable,the relationship between digital technology application and service GVCs participation,has carried on the empirical study.First,the principal component analysis method was adopted to calculate the overall GVCs production length index of the service industry in 38 sample countries,and to compare the countries according to the calculation results.Secondly,the measurement model was constructed and a multiple regression analysis was performed on the selected variables.Then,based on the original model,endogeneity and robustness tests were performed to determine the accuracy of the benchmark regression results.Again,the intermediary variables were determined and tested by mechanism.Finally,industries are divided according to factor intensity,and countries are divided according to income level,and the heterogeneity is tested respectively.The results of the study show that from 2005 to 2019,the participation of GVCs in China’s service sector has been increasing,with a more significant increase in the modern service sector.The participation of GVCs in the service sector has increased to varying degrees in most countries,with a more pronounced increase in developing countries.Digital technology adoption,represented by Internet penetration and cell phone usage,has a significant impact on the increase of service sector GVCs participation in each country.The widespread use of digital technology deepens a country’s service sector GVCs participation by increasing its service sector productivity.The application of digital technology has a positive impact on the participation of GVCs in different factor-intensive services,with a "decreasing" impact on capital-intensive,knowledge-intensive,and labor-intensive services,and a higher impact on the participation of GVCs in services in developing countries than in developed countries.Based on the results of the study,China should accelerate the promotion of the "strong network",improve the digital infrastructure of the Internet,and increase the usage and security of the Internet.Paying attention to mobile communication technology and integrate it reasonably with Internet technology.And enhancing the promotion of labor-intensive service industry by digital technology through institutional and policy innovation.