Global Value Chains, Environmental Regulation, and Firm-Level Determinants of Carbon Productivity: Evidence from Chinese Firms

Xiaomin Li and Kiyoung Jeon
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Xiaomin Li: Chungnam National University
Kiyoung Jeon: Chungnam National University

East Asian Economic Review, 2026, vol. 30, issue 3, 369-394

Abstract: Global value chains (GVCs) play an increasingly important role in shaping firms’ carbon productivity, especially in emerging economies undergoing low-carbon transition. We examine the impact of firm-level factors, environmental regulation, and GVC participation on carbon productivity among Chinese manufacturing firms during 2007–2022. The findings of this study are presented as follows: First, leverage, employee scale, liquidity, and return on assets exert a positive influence on carbon productivity, while internationalization has a negative impact on carbon productivity. Second, the carbon emissions trading system also has a positive effect on carbon productivity. Third, GVC participation and forward participation have a positive impact on carbon productivity, whereas backward participation has a negative effect on carbon productivity. This study provides firm-level evidence on the links among internal firm characteristics, environmental regulation, GVC participation, and low-carbon production efficiency, and suggests policy levers for strengthening environmental regulation and promoting low-carbon strategies.

Keywords: Carbon Productivity; Environmental Regulation; Global Value Chains (search for similar items in EconPapers)
JEL-codes: F14 Q56 Q58 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:023655

DOI: 10.11644/KIEP.EAER.2026.30.3.469

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