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Digital Input in Circulation Industry and Depth of Production Fragmentation in Domestic Value Chain |
WANG Jiarong1, CHEN Jinran2, LI Chenhua3 |
1.School of Business, Renmin University of China
2.School of Economics, Capital University of Economics and Business
3.School of Economics, Nanjing Audit University
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Abstract: In the era of digital economy, the in-depth empowerment of information and communication technology to the traditional circulation industry has become an important channel for high-quality and highefficiency economic development in the context of the new development paradigm. Based on China's multi-regional input-output tables in 2002, 2007, 2012 and 2017, this paper empirically examines the influence of digital input in the circulation industry on the depth of production fragmentation in domestic value chain (DVC), and the complementary role of domestic market conditions from the dual dimensions of “quality” and “efficiency”. The findings are as follows: (1)the development of digital input in circulation industry can promote the depth of production fragmentation in DVC. Further, from the specific mechanism, the depth of production fragmentation in DVC is mainly achieved through scale economy effect and transaction cost saving effect. (2)the heterogeneity test results suggest that the promotion effect of digital input in circulation industry on the production fragmentation is more prominent in the samples of logistics industry, regions with higher economic development level, industries with lower competitive advantage, and the samples with stronger preference for inter-regional digital input. (3)improving domestic market conditions from the dual dimensions of “quality” and “efficiency” can “amplify” the positive impact of digital input in the circulation industry on the depth of production fragmentation in DVC. Therefore, to enhance the penetration of data elements in circulation and strive for media exchange in a wider spatial range is the key path to promoting the depth of production fragmentation in DVC.
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Received: 18 September 2023
Published: 15 December 2023
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