Digitalization and regionalization of Global Value Chains in European industries

Anna Giunta (), Enrico Marvasi and Marco Sforza
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Anna Giunta: Roma Tre University
Marco Sforza: Roma Tre University

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2025, vol. 52, issue 3, No 4, 599-628

Abstract: Abstract This paper explores the relationship between digitalization and the regionalization of Global Value Chains (GVCs) in European industries. The paper discusses the theoretical channels through which digital technologies may influence GVC regionalization and develops a conceptual framework to guide the empirical analysis. The analysis focuses on the manufacturing sectors of a sample of European countries in the period 2005–2018. To econometrically identify the causal effect of digital technologies on regionalization, we implement a Bartik instrumental variables approach exploiting patent data on information and communication technologies (ICT) and artificial intelligence (AI). Our main finding is that digital technologies enhance the intra-EU flows more than the extra-EU ones, thus pointing to the regionalization of GVCs in Europe.

Keywords: Global value chains; Regionalization; Digitalization (search for similar items in EconPapers)
JEL-codes: F10 F15 O33 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40812-025-00347-2

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