The Impact of Geopolitical Disruptions on IT-Driven Global Value Chains

Author : Ewa Cieslik, Anna Zamojska

Abstract :This paper analyzes the resilience of digital and technological global value chains (GVCs) in the context of geopolitical disruptions, specifically focusing on the impact of U.S. policies during the Trump administration. The study examines whether these policies led to changes in digital trade flows and export specialization in technology-driven sectors between the EU, China, and the U.S., emphasizing domestic value-added exports in IT and high-tech industries. Using data from 1995 to 2020 and applying a dynamic difference-in-differences methodology, the findings reveal that despite geopolitical pressures, digital GVCs have remained largely robust, with limited evidence of significant decoupling. The study discusses the role of IT infrastructure, digital ecosystems, and cross-border data flows in sustaining global technological networks amid protectionist policies. These insights are vital for understanding the future of digital trade and the stability of IT-driven global value chains.

Keywords :decoupling, GVCs, technology JEL: C50, F14

Conference Name :International Conference on Computer Science and Information Technology (ICCSIT-24)

Conference Place Las Palmas de Gran Canaria, Spain

Conference Date 14th Nov 2024