The Impact of Digital Transformation on the Global Value Chain Position of the Guangdong–Hong Kong–Macao Greater Bay Area

Abstract

When considering the economic growth of the Greater Bay Area, digital transformation stands out as a crucial catalyst. Given its significance, it is imperative to delve into both the theoretical and empirical aspects of how digital transformation affects the region’s position in the global value chain. Theoretical hypotheses are put forward regarding the impact and mechanisms of digital transformation on the global value chain position of the Greater Bay Area based on a global value chain perspective. A three-tier nested input–output table that incorporates the Greater Bay Area is constructed, and trade decomposition and global value chain position measurement models specific to the area are developed for analyzing its current state in terms of global value chain position. Empirical testing was conducted to examine how digital transformation impacts this position. Digital transformation will significantly enhance the position of the Greater Bay Area in the division of global value chains, mainly through enhancing technological innovation transformation capabilities and value added by exports from the Greater Bay Area. Digital transformation within the Greater Bay Area has had a more substantial positive impact than the digital transformation in other provinces in China and digital transformation from foreign sources. In terms of city heterogeneity, it is evident that the global value chain from Hong Kong and Macao has experienced a more significant impact from digital transformation compared to cities in the Pearl River Delta. Therefore, the Greater Bay Area should increase the use of both digital transformation and differentiated use of digital transformation. PRD cities should actively learn from Hong Kong and Macao’s forms of digital construction and promote the Greater Bay Area’s global value chain status.