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Digitalization and institutional quality as drivers of global value chains

Evidence from Asean using CS-ARDL Analysis

Bibliographic Data

ID17832181
AuthorsMa Kai (North China University of Water Resources and Electric Power), Qi Xu (0000-0002-9030-9065, Zhengzhou University), Muhammad Sibt e Ali (ILMA University, corresponding author), Mohd Abass Bhat (0000-0003-0705-5410, Muscat College), Akhtar Rehman (Shenzhen University), Laeeq Razzak Janjua (0000-0002-1948-5859, WSB University)
Year2026
Volume13
Issue1
Publication date2026-01-06
Open AccessYes
TypeARTICLE
VenueHumanities and Social Sciences Communications (JOURNAL)
Journal identifiersISSN: 2662-9992 • E-ISSN: 2662-9992
PublisherPalgrave Macmillan (PUBLISHER • GB)
DOI10.1057/s41599-025-06421-3
OpenAlexW7119194998
LanguageEN
References cited107

In recent decades, digitalization and global value chains (GVC) have significantly transformed global trade and industry, impacting sustainable development. This study investigates the influence of economic growth, energy mix, institutional quality, digitalization, and natural resource rents on the GVC. Utilizing cross-sectional autoregressive distributed lag (CS-ARDL) and panel data from eight ASEAN nations spanning 2000–2023, the Pesaran CD test confirmed the interdependence of the cross-sections. The findings indicate that institutional quality, energy mix, digitalization, and economic growth have a significant positive influence on GVC. Specifically, a 1% increase in economic growth, energy mix, institutional quality, digital economy, and natural resource rents results in GVC increases of 0.0279%, 0.3362%, 0.0411%, 1.7549%, and 0.0431%, respectively. The DCCE and NWSE estimators were used to validate the CS-ARDL estimator results. The analysis also highlights subtle regional variations, with more advanced ASEAN economies benefiting more from digital advancements, whereas others rely more on institutional reforms and energy diversification. Policy implications suggest that coordinated efforts to adopt renewable energy, enhance institutional capacity, and develop digital infrastructure can effectively promote GVC upgrading. By incorporating these dimensions, this study provides new empirical evidence on factors that may enhance GVC competitiveness in emerging markets, which is essential for discussions on sustainable development and regional economic integration

Distributed lag · Economic rent · Emerging markets · Empirical evidence · Natural resource · Panel data · Sustainable development · Economic and Technological Innovation · Energy, Environment, Economic Growth · Environmental Impact and Sustainability

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