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Can Global Value Chain Participation Drive Green Upgrade in China’s Manufacturing Industry?

Author

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  • Shi Wang

    (Institute of Area Studies, Xi’an International Studies University, Xi’an 710128, China
    “One Belt One Road” Economic and Trade Cooperation Innovation Team, Xi’an International Studies University, Xi’an 710128, China
    School of Economics and Finance, Xi’an International Studies University, Xi’an 710128, China)

  • Hua Wang

    (School of Foreign Studies, Xi’an Jiaotong University, Xi’an 710049, China
    Center for Asia-Europe Studies, Xi’an Jiaotong University, Xi’an 710049, China)

Abstract

Engagement in the global division of labor has greatly influenced China’s economy and environment. With the multi-regional input–output (MRIO) framework, we calculate the global value chain (GVC) participation index of China’s 16 manufacturing sectors. We also measure the green upgrade index of manufacturing sectors based on the super-efficiency epsilon-based measure (SEBM) and the Malmquist–Luenberger (ML) index. In addition, the effect of GVC participation on the green upgrade of manufacturing sectors is empirically tested with a fixed effects regression model for panel data. Results show that: (1) sectors that rank high in the forward linkage-based GVC participation index also tend to rank high in the backward linkage-based GVC participation index; (2) the ML index is greater than 1 in most years, indicating that the green upgrade of China’s manufacturing sectors shows an uptrend; (3) for both forward and backward linkage, the rise of the GVC and complex GVC participation indexes significantly promotes the green upgrade of manufacturing sectors. Finally, GVC participation of China’s manufacturing sectors promotes green upgrade mainly through green technology progress. The conclusions have empirical evidence and policy implications for the advancement to medium- and high-end GVC participation and the green transition of China’s manufacturing sectors.

Suggested Citation

  • Shi Wang & Hua Wang, 2022. "Can Global Value Chain Participation Drive Green Upgrade in China’s Manufacturing Industry?," IJERPH, MDPI, vol. 19(19), pages 1-20, September.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:19:p:12013-:d:922571
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    Cited by:

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    2. Can Li & Qi He & Han Ji & Shengguo Yu & Jiao Wang, 2023. "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," Sustainability, MDPI, vol. 15(18), pages 1-31, September.

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