IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v44y2023i8p4262-4277.html
   My bibliography  Save this article

Moving up the global value chain: Effects of water pollution control regulations in China

Author

Listed:
  • Wenxiao Wang
  • Kairong Ma
  • Lingyu Kong

Abstract

This paper investigates the impacts of stringent environmental regulation of firm‐level upstreamness in the global value chains (GVCs). Specifically, we use the non‐uniform promulgation of local water pollution control regulations across cities and over time after the 11th Five‐Year Plan as a quasi‐natural experiment in China, in which firms are forced to adopt cleaner technologies or equipment to reduce pollution after enforcing tighter environmental standards. Using highly disaggregated firm‐level data between 2008 and 2014, we find that firms in cities with stricter water pollution regulations tend to move to more upstream sectors in the GVCs. We find that this effect is more prominent for low‐productivity firms, high‐polluting firms, and firms with a high dependence on water in production. This paper sheds new light on the GVC upgrading of firms in response to environmental regulation changes.

Suggested Citation

  • Wenxiao Wang & Kairong Ma & Lingyu Kong, 2023. "Moving up the global value chain: Effects of water pollution control regulations in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4262-4277, December.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:8:p:4262-4277
    DOI: 10.1002/mde.3947
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3947
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3947?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:44:y:2023:i:8:p:4262-4277. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.