Digital transformation as a driver of participation in global value chains

Abstract

The article examines how digital transformation deepens countries’ participation in global value chains. The study aims to substantiate the mechanisms through which digitalization influences countries’ integration into global production networks and to identify strategic directions for strengthening trade and digital development. The study uses systems analysis, comparison, generalization, and synthesis of international experience. The findings show that digital technologies reduce transaction costs, improve coordination efficiency, and facilitate cross-border trade procedures. The results indicate that digital infrastructure alone is insufficient to ensure deeper participation in GVCs, as its effects depend on complementarity with trade openness, trade facilitation, and investment linkages. Broadband and mobile infrastructure create the basis for digital inclusion, while trade openness strengthens integration into international production networks. At the same time, FDI does not automatically generate technology and knowledge spillovers, highlighting the importance of linkages between foreign investors and local SMEs. International experience demonstrates that Smart Customs and Single Window systems can reduce administrative and time costs in cross-border trade. Integrating these systems with artificial intelligence, distributed ledger technologies, and the Internet of Things expands opportunities for digital verification, customs control, cargo monitoring, and supply-chain transparency. These mechanisms can facilitate SME integration into GVCs by reducing barriers to international production networks. The study’s scientific novelty lies in developing an integrated approach that combines digital, trade, and investment mechanisms for GVC integration. The study’s practical significance is reflected in the proposed strategic directions for trade and digital policy. Further research should quantitatively assess the complementary effects of digital readiness and trade facilitation on countries’ participation in GVCs. Keywords: digital transformation, global value chains, digital trade, international trade, Single Window systems, digitalization.