Global Value Chain Participation and Sustainable Growth: Evidence from China

Huan Yan, Xiaojing Li and Shuang Meng ()
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Huan Yan: Institute of Industrial Economics, Chinese Academy of Social Science
Xiaojing Li: Shanghai Development Research Institute, Shanghai Party Institute of CPC.
Shuang Meng: School of International Trade and Economics, Central University of Finance and Economics.

Journal for Economic Forecasting, 2023, issue 2, 5-20

Abstract: Utilizing panel data of China’s industrial sectors from 2000 to 2014, this study explores the causal relationship between GVC participation and sustainable growth measured by green total factor productivity (GTFP). The results show that both forward and backward participation have a positive impact on GTFP, and the former is more significant. Specifically, both simple and complex activities of forward GVC participation show a positive effect on GTFP, while only complex activities of backward participation show a positive effect. Mediation analyses suggest that GVC participation affects sustainable growth through two channels: environmental regulation and technology spillover. Moreover, GTFP responses to GVC participation vary by technology orientation, pollution intensity, and FDI intensity.

Keywords: sustainable growth; green total factor productivity; global value chain; mechanism analysis. (search for similar items in EconPapers)
JEL-codes: F14 F43 F64 O44 O53 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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