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Global value chain and export-embodied carbon emissions: New evidence from foreign-invested enterprises

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  • Yan, Yunfeng
  • Li, Xiyuan
  • Wang, Ran
  • Pan, An

Abstract

Based on a new accounting and decomposition framework for the carbon emissions of foreign-invested enterprises (FIEs), this study analyzed the global value chain (GVC) characteristics of FIEs’ export-embodied carbon emissions and empirically examined the impact of GVC linkages on FIEs’ export-embodied carbon emissions. Panel data covering 59 economies from 2005 to 2016 were used. The results showed that export-embodied carbon emissions accounted for approximately 40% of FIEs’ emissions, and most were related to intermediate product trade, especially simple GVC activities. The empirical analysis indicated that GVC linkages between host and importing countries positively affected FIEs’ export-embodied carbon emissions, and that the positive effect was heterogeneous in different trade patterns and GVC activities. The mechanism analysis suggested that GVC linkages increased FIEs’ export-embodied carbon emissions due to export scale and carbon composition effects. This new evidence highlights the importance of FIEs in constructing green GVC.

Suggested Citation

  • Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Pan, An, 2023. "Global value chain and export-embodied carbon emissions: New evidence from foreign-invested enterprises," Economic Modelling, Elsevier, vol. 127(C).
    • Handle: RePEc:eee:ecmode:v:127:y:2023:i:c:s0264999323002614
    DOI: 10.1016/j.econmod.2023.106449
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