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Global Value Chain Participation and Green Innovation: Evidence from Chinese Listed Firms

Author

Listed:
  • Shuang Meng

    (School of International Trade and Economics, Central University of Finance and Economics, Beijing 100081, China)

  • Huan Yan

    (Renmin Business School, Renmin University of China, Beijing 100872, China)

  • Jiajie Yu

    (Business School, Beijing Normal University, Beijing 100875, China)

Abstract

Green innovation is one of the most important approaches to prevent environmental pollution and foster sustainable development. Embedded in the global production networks, manufacturing firms have been found not only to be the main drivers of innovation but also the main polluters in developing countries. However, relatively few studies have systematically considered the effect of global value chain (GVC) participation on green innovation in the context of developing countries. By using a panel dataset of Chinese listed manufacturing firms, this study conducts panel data fixed-effect analyses and uses the instrumental variable two-stage least square model to investigate the effect of GVC participation on firms’ green innovation performance. The results show that increased GVC participation leads to improved green innovation performance of Chinese firms. Meanwhile, further heterogeneity analyses show that the impact of GVC participation on green innovation is more pronounced for firms with greater financial constraints, state-owned firms and firms in labor- or pollution-intensive industries, located in the eastern regions of China. Therefore, this study sheds light on the implication that actively participating in GVC is the key to promoting sustainable growth when facing the need for transformation in developing countries.

Suggested Citation

  • Shuang Meng & Huan Yan & Jiajie Yu, 2022. "Global Value Chain Participation and Green Innovation: Evidence from Chinese Listed Firms," IJERPH, MDPI, vol. 19(14), pages 1-17, July.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:14:p:8403-:d:859211
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    Cited by:

    1. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    2. Hu, Shuo & Wang, Ailun & Du, Kerui, 2023. "Environmental tax reform and greenwashing: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 124(C).
    3. Paulius Šūmakaris & Kristina Kovaitė & Renata Korsakienė, 2023. "An Integrated Approach to Evaluating Eco-Innovation Strategies from the Perspective of Strategic Green Transformation: A Case of the Lithuanian Furniture Industry," Sustainability, MDPI, vol. 15(11), pages 1-33, June.
    4. Jinchao Huang & Shuang Meng & Jiajie Yu, 2023. "The Effects of the Low-Carbon Pilot City Program on Green Innovation: Evidence from China," Land, MDPI, vol. 12(8), pages 1-26, August.
    5. 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.
    6. Hui Fang & Qixin Huo & Kaouakib Hatim, 2023. "Can Digital Services Trade Liberalization Improve the Quality of Green Innovation of Enterprises? Evidence from China," Sustainability, MDPI, vol. 15(8), pages 1-22, April.

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