<p>Global value chain (GVC) participation allows countries and firms to specialize in production stages, boosting efficiency and competitiveness, while providing access to technology, knowledge, and markets that promote economic growth and employment. Given the importance of GVC integration, this study scrutinises how data policy restrictions, institutional quality, and technological infrastructure influence GVC participation using panel data from 58 countries spanning 2006 to 2023 by employing the Method of Moments Quantile Regression (MMQR) and Dumitrescu–Hurlin (D-H) causality tests. Moreover, we decomposed the GVC participation into backward and forward involvement to assess the effect of data policy restrictions. The findings reveal a significant negative impact of data policy restrictions on overall GVC participation and its subcomponents—backward and forward integration—across all quantiles. In contrast, human capital development, institutional quality, technological infrastructure, and migration positively contribute to GVC participation, while geographic location serves as a constraint. Furthermore, the magnitude of both positive and negative effects intensifies along the quantile scale. Additionally, the study finds that high-GVC countries are more sensitive to data restrictions than low-GVC participants, reflecting their greater reliance on cross-border data flows. The D-H causality test confirms a bidirectional relationship between human capital development, institutional quality, migration, and GVC participation. These findings offer valuable insights for policymakers seeking to enhance GVC participation by reducing regulatory barriers, strengthening institutional frameworks, and investing in technological infrastructure.</p>