Global Value Chains Embeddedness for the Energy Efficiency: A Panel Data Approach with Country-Level Decomposition

Shu Wang, Ying Li (), Muhammad Nadeem and Maria Altaf
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Shu Wang: School of Economics, Faculty of Economics, Liaoning University, Shenyang 110136, China
Ying Li: Business School, Faculty of Economics, Liaoning University, Shenyang 110136, China
Muhammad Nadeem: College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211100, China
Maria Altaf: Department of Mathematics, University of Education, Lahore 52254, Pakistan

Sustainability, 2023, vol. 15, issue 6, 1-12

Abstract: This study examines the link between a firm’s energy efficiency and their participation in global value chains (GVCs). Both countries’ GVCs participation and positioning indices are designed to define the features of countries’ participation in global value chains. We begin with a theoretical approach of how GVC participation influences energy efficiency. The sample size of 54 nations from 2000 to 2019 is then investigated for empirical analysis using FE and 2SLS methods. The results show that the impact of countries’ participation in GVCs is unknown and the development of global value chains positioning increases the energy efficiency in selected countries. Further, it is found that the expansion of GVCs positioning index increases energy efficiency and the effect of forward GVCs positioning on energy efficiency is larger than the effect of backward GVCs positioning. Furthermore, increasing GVC participation in wealthy nations reduces the energy efficiency of the manufacturing industries, but increasing GVC participation in developing countries raises the energy efficiency of manufacturing industries, somewhat opposing the pollution haven approach. A key policy recommendation is that countries actively participate in GVCs to encourage energy efficiency at the macro-level.

Keywords: energy efficiency; global value chains; 2SLS (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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