Digitalization of Manufacturing Inputs and Production Chain Length
ZHOU Hongwei1, PANG Suqin2, LIU Shuguang3, ZHANG Luwen1
1. School of Economics, Nankai University, Tianjin 300071,China; 2. School of Economics, Huazhong University of Science and Technology, Wuhan 430074,China; 3. School of Economics, Ocean University of China, Qingdao 266100,China
Abstract Based on the OECD world input-output and multinational-industry panel data from 1995 to 2018, this paper empirically examines the impact of manufacturing input digitization on the length of production chain. There are following findings: Firstly, digitalization of manufacturing investment has significantly extended the length of the production chain; Secondly, heterogeneity testing shows that digitalization of manufacturing inputs has a more significant impact on developing countries, capital intensive industries, upstream industries in the global value chain, and pure domestic production activities. Moreover, the positive impact of digitalization of foreign inputs on production chain length is smaller than that of domestic inputs; Thirdly, the mechanism test shows that the digitization of manufacturing input extends the length of the production chain mainly by expanding the import quantity and improving the import quality of intermediate goods; Fourthly, further analysis indicates that the scale of consumer demand potential can enhance the positive impact of digitalization of manufacturing inputs on production chain length, while the structure of consumer demand potential has no significant impact. The digitalization of manufacturing investment has a significant “industry diffusion effect” in the process of extending the length of the production chain. The research conclusion has important implications for building a new development pattern with internal circulation as the main focus and external circulation as the empowerment.
2024, Vol. 41 
