Does GVC embedding reduce carbon emissions? Empirical evidence from 218 Chinese cities

Li, Guangqin; Zhang, Xi

doi:10.1016/j.strueco.2023.05.005

Cited by 4 publications

(9 citation statements)

References 30 publications

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“…In China, cities at the prefecture level and above, which comprise finer administrative divisions than provinces, have become the backbone of China's economic development and the center of technological innovation [76]. Different cities exhibit significant differences in terms of resource endowments, economic development, and GVC participation [16], thus indicating that higher-level regional research may not be able to identify the impact of GVC participation on economic growth. Some research has suggested that city samples have a larger capacity and can provide more microlevel and reliable empirical estimates than provincial-level research [77,78].…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, studies focusing on the direct economic impact of China's GVC participation at the city level are extremely scarce. Some studies have used the methods developed by Upward et al [35] and Shao and Su (2017) [73] to construct indicators of GVC participation in Chinese cities using customs data, thereby exploring the impacts of GVC participation on carbon emission intensity [16] and air pollution [78] at the city level.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Research in the relevant field is also limited in terms of its analysis at the subnational level, which is particularly important in light of China's deep and broad territory, which is characterized by obvious regional heterogeneity in terms of resource endowments and development levels [15]. Consequently, disparities in GVC participation could potentially lead to imbalances in regional economic growth [16]. In particular, the ability of major cities to absorb, innovate, complete specific production tasks, as well as respond to dynamic changes in GVCs, is key to regional economic development disparities [17].…”

Section: Introductionmentioning

confidence: 99%

“…China is a country with a deep and broad territory which is characterized by obvious regional heterogeneity. Resource endowments of different cities and location conditions vary significantly, affecting their GVC participation and economic development [16]. Additionally, regional GVC participation may influence economic growth in other regions.…”

Section: Introductionmentioning

confidence: 99%

“…There are 297 cities at the prefecture level or above [18], which represent the backbone of China's economic development. Different cities, even within the same province, exhibit significant variations in resource endowments and locational conditions, thus impacting their GVC participation and economic growth [16]. City-level samples have larger capacities, yielding more robust empirical evidence.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Reexamining the Impact of Global Value Chain Participation on Regional Economic Growth: New Evidence Based on a Nonlinear Model and Spatial Spillover Effects with Panel Data from Chinese Cities

Li,

He,

et al. 2023

Sustainability

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This study utilizes panel data drawn from 239 Chinese cities, and it employs fixed-effects models, mediation models, and spatial spillover models to reexamine the actual impact of the global value chain’s (GVC) participation on regional economic growth. The findings reveal that this impact exhibits a U-shaped nonlinear pattern, with the turning point of GVC occurring at 0.45, which is higher than that of 222 cities. Most cities are on the left side of the U-shaped curve, which corresponds with the second stage of the “in-out-in-again” GVC participation pattern (i.e., the “out” stage). During this stage, a decline in foreign value-added ratio (FVAR), with regard to exports (accompanied by an increase in the domestic value-added ratio), promotes economic growth. Innovation capability acts as a mediator in the relationship between GVC participation and economic growth. Furthermore, GVC participation has significant spillover effects on neighboring cities, with siphon and spillover effects coexisting. Thus, China should focus on establishing domestic value chains and innovation systems, achieving relative independence from existing GVCs dominated by developed countries, enhancing indigenous innovation capabilities, and laying the foundation for the third stage (in-again) of reintegration into GVCs, at the high value-added end, to achieve a higher level of openness. This study explores the nonlinear impact of GVC participation on regional economic growth in China from both theoretical and empirical perspectives, focusing on the finest divisions that remain feasible—cities. This approach expands and supplements the relevant field of research in valuable ways, yielding more realistic research conclusions and policy recommendations.

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