Impact of Artificial Intelligence on Manufacturing Industry Global Value Chain Position

Jun Liu (), Xin Jiang, Mengxue Shi and Yuning Yang
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Jun Liu: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China
Xin Jiang: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China
Mengxue Shi: Bank of Suzhou Co., Ltd., Suzhou 215028, China
Yuning Yang: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China

Sustainability, 2024, vol. 16, issue 3, 1-17

Abstract: Using transnational panel data from 61 nations and regions from 2000 to 2019, this article empirically examines both the influence of artificial intelligence on the Global Value Chain as it pertains to the manufacturing industry and its mechanism of action. According to the report, AI significantly improves the industrial sector’s GVC position; this finding still holds after multiple robustness and endogeneity tests of the model. The findings of the heterogeneity test at the national level demonstrate that, in developing nations as opposed to developed countries, AI has a stronger impact on advancing the GVC position of the manufacturing industry. Heterogeneity tests at the industry level show that AI has a significant role in promoting the GVC of high, medium and low technology manufacturing industries. The mechanism test demonstrates three primary ways by which AI contributes to improving the GVC position of the manufacturing industry: by improving both production efficiency and technological innovation capacity, and by reducing trade costs. This study provides policy implications for the promotion of AI with respect to China’s manufacturing industry GVC position.

Keywords: artificial intelligence; manufacturing industry; global value chain position (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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