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Digital trade rules and division of labour in global value chains

Author

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  • Luo, Xiaoke
  • Xiao, Yongping

Abstract

In the era of digitalization, global value chains are evolving. While digital trade rules are vital for regulating digital trade, their role in division of labour in global value chains is underexplored. This paper studies the mechanism of digital trade rules on the division of labour in global value chains and analyses the mediating effect of financial transaction costs. The results show that digital trade rules can significantly enhance the division of labour in global value chains, and financial transaction costs play a mediating effect in this process, with greater positive impact on less digitally developed economies.

Suggested Citation

  • Luo, Xiaoke & Xiao, Yongping, 2025. "Digital trade rules and division of labour in global value chains," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014199
    DOI: 10.1016/j.frl.2025.108164
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    References listed on IDEAS

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