Does "Going Green" Promote Global Value Chains Integration?

Mariam Fayek and Chahir Zaki ()
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Mariam Fayek: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris
Chahir Zaki: LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne

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Abstract: Many business entities still prioritize profits over environmental protection and perceive these two goals as inherently incompatible. Thus, this study examines the impact of environmentally oriented investments on the firms' integration into global value chains (GVCs). Using firm-level data in 41 countries from the Business Environment and Enterprise Performance Survey (BEEPS), we show that firms could raise their opportunity to participate in GVCs by adopting environment protection actions through the mediation of productivity gains, yet the impact of adopting such actions on the intensity of GVC participation tends to be negligible. Likewise, larger firms are more likely to experience a raise of their chance to participate in international trade through environmental upgrading rather than their smaller counterparts. This finding is important since firms are increasingly being held accountable for their significant contribution in the environment degradation.

Date: 2023-12-15
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-04346861

DOI: 10.5281/zenodo.10390660

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