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Title: Digital economy and global value chain restructuring from a cross-country sustainable industry analysis

Authors: Li Zhou; Mohd Azlan Shah Zaidi; Zhanxue Wang

Addresses: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600, Bangi, Selangor, Malaysia; Faculty of Economics and Management, Jiangxi Polytechnic University, Jiujiang, Jiangxi, 320007, China ' Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600, Bangi, Selangor, Malaysia ' Shenwan Hongyuan Securities Co. LTD., 200031, China

Abstract: The unprecedented expansion of the digital economy is fundamentally altering the architecture and operational dynamics of global value chains (GVCs). This study investigates the impact of digital economy development on the restructuring of GVCs. This analysis develops a theoretical framework and employs empirical analysis utilising cross-country industry data. These findings show that digital economy development catalyses GVC restructuring. This restructuring is mainly reflected in changes in network positions within GVCs, with notable heterogeneity across industries, input origins, and country classifications. Mechanism analysis shows that the digital economy promotes the restructuring of GVCs by improving production efficiency and innovation capabilities.

Keywords: GVC; global value chain restructuring; digital economy; production efficiency; innovation capability; mediation effect.

DOI: 10.1504/IJEP.2026.151757

International Journal of Environment and Pollution, 2026 Vol.76 No.1/2, pp.74 - 101

Received: 11 Apr 2025
Accepted: 21 Jul 2025
Published online: 18 Feb 2026 *