Digital global value chains: An analysis from the perspective of a value-added decomposition

Abstract

Digital technologies reshape the distribution of value added through global value chains (GVCs). Based on the GVC decomposition method, we calculate the digital technology-related value added implied in GVCs. We find that digital technology-related value added share in service industries is higher and growing more rapidly than overall industries. The share of digital technology-related value added of three trade paths in service industries is higher than its share in overall industries. In service industries, simple and complex value chains have a higher share of digital technology-related value added than traditional value chains. Digital technology-related value added in China's service industries grows faster than overall industries, and digital technology-related value added in China's service industries trade grows faster than in overall industries trade. The share of digital technology-related value added in trade is higher and grows faster than its in domestic demand. The share of digital technology-related value added in China's service industries is higher than that in overall industries. This paper offers new interpretations of digital GVCs.