A study on the impact of digital trade on the position of services in global value chains

Return results from different industries

Variable	Primary industry	Secondary industry	Tertiary industry
	GVCpos	GVCpos	GVCpos
Per	1.367	0.197	1.951***
	(1.12)	(1.30)	(4.55)
LP	-0.313*	-0.046**	-0.241***
	(-1.76)	(-2.01)	(-3.17)
FDI	0.995	0.474***	0.441***
	(1.53)	(3.93)	(2.86)
lnPGDP	-0.192	0.119***	-0.131***
	(-0.50)	(3.15)	(-2.75)
ctfp	-0.222**	-0.122**	-0.131***
	(-2.35)	(-1.93)	(-3.73)
hc	-0.521	-0.341***	-0.232**
	(-1.55)	(-3.65)	(-2.13)
_cons	0.604	0.306	3.296***
	(0.23)	(0.88)	(5.48)
N	86	398	331
R^2	0.892	0.805	0.873

Regression result

	First	Second
	Per	GVC
θ	0.005***
	(14.71)
LP	0.009	-0.062***
	(1.05)	(-3.23)
FDI	-0.011	0.125*
	(-0.47)	(1.91)
lnPGDP	0.016*	-0.072***
	(1.68)	(-4.77)
ctfp	-0.003	-0.023
	(-0.25)	(-0.86)
hc	0.024	0.025
	(1.25)	(0.45)
Per		0.571***
		(3.57)
_cons	-0.109	1.435***
	(-0.84)	(4.26)
N	815	815
R^2	0.893	0.913

Benchmark regression

	(1) GVCpos	(2) GVCpos	(3) GVCpos	(4) GVCpos	(5) GVCpos	(6) GVCpos
Per	0.181*	0.224**	0.233**	0.225**	0.241**	0.243**
	(-1.838)	-2.296	(2.381)	(2.246)	(2.438)	(2.467)
Per2	-0.548**	-0.573**	-0.612**	-0.594**	-0.649***	-0.643***
	(-2.389)	(-2.417)	(-2.546)	(-2.461)	(-2.644)	(-2.664)
LP		-0.054***	-0.051***	-0.055***	-0.056***	-0.052***
		(-6.211)	(-6.245)	(-6.239)	(-6.380)	(-6.136)
FDI			0.005	0.005	0.007	0.007
			(1.143)	(1.154)	(1.343)	(1.368)
lnPGDP				0.003	0.006	0.007
				(0.322)	(1.061)	(1.094)
ctfp					-0.044*	-0.042*
					(-1.879)	(-1.943)
hc						-0.005
						(-0.551)
_cons	0.032***	0.387***	0.387***	0.366***	0.354***	0.375***
	(-4.118)	-6.681	(6.715)	(4.358)	(4.231)	(4.178)
Inflection point	0.167	0.195	0.193	0.184	0.182	0.196
Individual fixation effect	Controlled	Controlled	Controlled	Controlled	Controlled	Controlled
Year fixed effect	Controlled	Controlled	Controlled	Controlled	Controlled	Controlled
N	815	815	815	815	815	815
R^2	0.848	0.856	0.855	0.855	0.855	0.856

Return results from different income levels

Variable	Low- and middle-income countries	Middle- and high-income countries	High-income countries
	GVCpos	GVCpos	GVCpos
Per	0.152**	1.752***	-0.022
	(2.443)	(4.671)	(-0.631)
Per2		-3.784***
		(-4.495)
LP	-0.068***	0.043*	-0.090***
	(-3.762)	(1.786)	(-7.125)
FDI	-0.011	-0.108*	0.005
	(-0.265)	(-1.832)	(1.621)
lnPGDP	-0.013	0.021	0.005
	(-0.774)	(1.295)	(0.641)
ctfp	-0.082	-0.093	0.031
	(-0.965)	(-1.444)	(1.118)
hc	-0.048	0.032	-0.039**
	(-1.576)	(0.862)	(-2.082)
_cons	0.691***	-0.503**	0.660***
	(3.645)	(-2.085)	(5.135)
N	118	163	534
R^2	0.892	0.805	0.873

Variable measure and data source

Variable	Variable symbol	Variable name	Measure method	Data source
Dependent variable	GVC	Global value chain status	WZZ decomposition calculation	ADB-MRIO
Independent variable	Per	Digital trade	Ict commodity trade exports account for the total amount of trade exports	UNCTAD
Mediation variable	lnRD	Technical innovation	Patent application	WDI
	CS	Transaction cost	Based on Internet coverage as agency variables
Control variable	LP	Labor market scale	The 15-64 year old labor force accounts for the population
	FDI	Foreign direct investment	Direct investment in foreign direct investment accounts for the proportion of GDP
	lnPGDP	Economic growth level	Per capita GDP
	ctfp	Labor productivity	Use the logarithmic measurement of total factor productivity	Payne 10.01
	hc	Human capital	The average period of education

Mechanism analysis

Variable	(1)	(2)	(3)	(4)
	lnRD	GVCpos	tc	GVCpos
Per	3.985***	0.217**	0.683**	0.273***
	(4.316)	(2.165)	(2.378)	(2.754)
Per2	-13.274***	-0.554**	-1.454**	-0.706***
	(-5.928)	(-2.225)	(-2.082)	(-2.928)
lnRD		0.006*
		(1.781)
tc				-0.049***
				(-3.311)
_cons	-4.516***	0.343***	-0.664***	0.345***
	(-5.465)	(3.754)	(-2.621)	(3.872)
Control variable	Controlled	Controlled	Controlled	Controlled
Individual fixation effect	Controlled	Controlled	Controlled	Controlled
Year fixed effect	Controlled	Controlled	Controlled	Controlled
N	815	815	815	815
R^2	0.996	0.837	0.942	0.861

Description statistics of variables

Variable	N	Mean	Variance	Minimum	Maximum
GVCpos	815	0.087	0.044	-0.062	0.199
Per	815	0.049	0.100	0.000	0.399
Per2	815	0.014	0.057	0.000	0.139
LP	815	6.657	0.288	5.826	7.266
FDI	815	0.087	0.340	-0.114	1.746
lnPGDP	815	9.708	1.200	6.921	11.538
ctfp	815	0.699	0.235	0.000	1.036
hc	815	3.140	0.466	1.865	3.791

Robustness test results

	(1) GVCpos_s	(2) GVCpos_s	(3) GVCpos_s	(4) GVCpos_s	(5) GVCpos_s	(6) GVCpos_s
Per	0.186*	0.256**	0.278**	0.296**	0.212**	0.276**
	(-1.854)	-2.248	(2.368)	(2.214)	(2.436)	(2.454)
Per2	-0.549**	-0.568**	-0.645**	-0.566**	-0.636***	-0.612***
	(-2.378)	(-2.458)	(-2.586)	(-2.454)	(-2.641)	(-2.637)
LP		-0.012***	-0.047***	-0.056***	-0.037***	0.0192***
		(-6.214)	(-6.268)	(-6.278)	(-6.358)	(-6.197)
FDI			0.008	0.005	0.006	0.005
			(1.158)	(1.168)	(1.386)	(1.378)
lnPGDP				0.004	0.003	0.005
				(0.348)	(1.045)	(1.067)
ctfp					-0.068*	-0.058*
					(-1.878)	(-1.937)
hc						-0.003
						(-0.595)
_cons	0.038***	0.337***	0.398***	0.369***	0.366***	0.357***
	(-4.157)	-6.697	(6.775)	(4.333)	(4.279)	(4.165)
N	815	815	815	815	815	815
R^2	0.897	0.858	0.848	0.878	0.839	0.874