Degree of Global Value Chain Embeddedness and ICT Services Export Performance: The Mediating Role of Productivity

Abstract

In the context of globalization and rapid technological development, the deep embedding of ICT services in global value chains is of great significance to international trade and export growth. This study constructs a theoretical model and empirically analyzes the impact of GVC embeddedness on the export performance of ICT service industry by using the panel data of 56 countries and regions in the world from 2007 to 2021 and the regression method of fixed-effects model, focusing on the mediating role of production efficiency. The study shows that the degree of GVC embeddedness has a significant positive impact on the export performance of ICT services, and production efficiency plays a mediating role, i.e., the participation of GVCs enhances production efficiency, which in turn promotes the growth of export performance. Heterogeneity tests show that both developed and developing countries benefit from GVC embeddedness, but with different degrees of impact. Based on the findings of the study, policy recommendations are provided for countries to enhance the export performance of ICT services in GVCs, including developing countries' integration into and upgrading of the value chain, developed countries' consolidation of their advantages and innovative cooperation, and countries should encourage technological innovation, strengthen education and training, guide the flow of foreign investment, support the regulation of service industries and formulate targeted policies.