The Impact of Digital Input Resources on the Resilience of China’s Manufacturing Industry in Global Value Chains

Abstract

The integration of digital technologies and the real economy has a profound impact on the restructuring of the international division of labor. It is becoming an important driver for enhancing the resilience of global value chains (GVCs). Using panel data for 17 manufacturing subsections in China for 2000-2020, the article exam-ines the impact of digital input resources (DIRs) on the resilience of China’s manufacturing industry within GVCs. The findings show that domestic sources of DIRs have a positive impact on the resilience of the Chinese manufacturing industry. The use of digital technologies and resources that are being developed and applied domestically helps strengthen the position of Chinese enterprises in the international arena. At the same time, external sources of DIRs, such as technology and service imports, produce a deterrent effect, which can nega-tively affect the resilience and competitiveness of local producers. The article concludes that a successful inte-gration of digital resources into the manufacturing industry can become a pivotal factor for achieving sustaina-ble growth and economic development in an era of globalization and rapidly shifting market conditions.