From resource curse to digital blessing? The impact of digitalization on the global energy value chain

Abstract

As a complex system that transcends national boundaries, the global energy value chain (GEC) faces multiple challenges in achieving multistage coordination and value creation. The widespread penetration of digitalization is becoming a key means of overcoming these bottlenecks. Against this backdrop, this study assesses how digital input influences countries’ participation in the GEC and explores the underlying mechanisms and the nonlinear features shaped by resource endowments. Using industry-level panel data for 74 countries from 2001 to 2020, this paper constructs both linear and nonlinear econometric models. The empirical results suggest that digital input is positively associated with deeper integration into the GEC. This effect is primarily realized through improved global connectivity, enhanced knowledge sharing, optimized industrial coordination, and increased production efficiency. Heterogeneity analysis reveals that the positive effect of digital input is more pronounced in high-income and nonresource-dependent countries, suggesting that national characteristics condition the responsiveness to digitalization-driven value chain participation. Importantly, the analysis reveals a nonlinear moderating effect of energy resource endowment. Specifically, digital input tends to promote value chain participation when energy-related natural resource rents exceed a certain threshold; however, the marginal benefits decline as rents continue to rise, consistent with characteristics commonly associated with the resource curse. Based on above findings, the study provides targeted policy recommendations.