Learning from Peers: How Peer Effects Reshape the Digital Value Chain in China?

Abstract

Digital products and services form a digital value chain in the process of value chain circulation and value added. The peer effects arising from mutual learning between regions can also influence the digital value chain. Using multi-regional input–output table data from China for the years 2012, 2015, and 2017, this paper constructs a panel data model to explore the impact of peer effects on the digital value chain. The analysis also delves into the mechanisms and variations in the influence of peer effects across different regions. The results show that peer effects can significantly enhance digital value chain positions (DVCPs) in the region, and the results are robust. The primary pathway through which peer effects influence the DVCPs is the level of attention given to digital economy policy. Furthermore, the heterogeneity of peer effects on the DVCPs varies depending on advanced technology and the industry intensity.

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