IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i14p8403-d859211.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/14/8403/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/14/8403/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries," International Business Review, Elsevier, vol. 31(5).
    2. Keun Lee & Marina Szapiro & Zhuqing Mao, 2018. "From Global Value Chains (GVC) to Innovation Systems for Local Value Chains and Knowledge Creation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 424-441, July.
    3. Yue Lu & Yunlong Lu & Rui Xie & Xiao Yu, 2019. "Does global value chain engagement improve firms' wages: Evidence from China," The World Economy, Wiley Blackwell, vol. 42(10), pages 3065-3085, October.
    4. Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2008. "Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 39-58.
    5. Zhou, William Chongyang & Yan, Daying & Sun, Sunny Li, 2022. "Climbing the Ladder: Inward Sourcing as an Upgrading Capability in Global Value Chains," Research Policy, Elsevier, vol. 51(3).
    6. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    7. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, vol. 39(7), pages 1261-1269, July.
    8. Gyamfi, Bright Akwasi & Bein, Murad A. & Udemba, Edmund Ntom & Bekun, Festus Victor, 2021. "Investigating the pollution haven hypothesis in oil and non-oil sub-Saharan Africa countries: Evidence from quantile regression technique," Resources Policy, Elsevier, vol. 73(C).
    9. Caiming Wang & Jian Li, 2020. "The Evaluation and Promotion Path of Green Innovation Performance in Chinese Pollution-Intensive Industry," Sustainability, MDPI, vol. 12(10), pages 1-22, May.
    10. Shengbing He & Huilin Yao & Zhou Ji, 2021. "Direct and Indirect Effects of Business Environment on BRI Countries’ Global Value Chain Upgrading," IJERPH, MDPI, vol. 18(23), pages 1-16, November.
    11. Ge, Jiali & Fu, Yang & Xie, Rui & Liu, Yu & Mo, Wenyang, 2018. "The effect of GVC embeddedness on productivity improvement: From the perspective of R&D and government subsidy," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 22-31.
    12. Le Yang & Jiahao Zhang & Yufeng Zhang, 2021. "Environmental Regulations and Corporate Green Innovation in China: The Role of City Leaders’ Promotion Pressure," IJERPH, MDPI, vol. 18(15), pages 1-21, July.
    13. Keun Lee & Marina Szapiro & Zhuqing Mao, 2018. "Correction to: From Global Value Chains (GVC) to Innovation Systems for Local Value Chains and Knowledge Creation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 575-575, July.
    14. Q. Zhang & B. Felmingham, 2002. "The Role of FDI, Exports and Spillover Effects in the Regional Development of China," Journal of Development Studies, Taylor & Francis Journals, vol. 38(4), pages 157-178.
    15. Kailan Tian & Erik Dietzenbacher & Richard Jong-A-Pin, 2019. "Measuring industrial upgrading: applying factor analysis in a global value chain framework," Economic Systems Research, Taylor & Francis Journals, vol. 31(4), pages 642-664, October.
    16. Cristina Constantinescu & Aaditya Mattoo & Michele Ruta, 2019. "Does vertical specialisation increase productivity?," The World Economy, Wiley Blackwell, vol. 42(8), pages 2385-2402, August.
    17. Tang, Chang & Xu, Yuanyuan & Hao, Yu & Wu, Haitao & Xue, Yan, 2021. "What is the role of telecommunications infrastructure construction in green technology innovation? A firm-level analysis for China," Energy Economics, Elsevier, vol. 103(C).
    18. Jan Hagemejer & Jakub Mućk, 2018. "Unraveling the economic performance of the CEEC countries. The role of exports and global value chains," NBP Working Papers 283, Narodowy Bank Polski.
    19. Jun-liang Du & Yong Liu & Wei-xue Diao, 2019. "Assessing Regional Differences in Green Innovation Efficiency of Industrial Enterprises in China," IJERPH, MDPI, vol. 16(6), pages 1-23, March.
    20. Arthur Lewbel, 1997. "Constructing Instruments for Regressions with Measurement Error when no Additional Data are Available, with an Application to Patents and R&D," Econometrica, Econometric Society, vol. 65(5), pages 1201-1214, September.
    21. Shen, Chunmiao & Zheng, Jianghuai, 2020. "Does global value chains participation really promote skill-biased technological change? Theory and evidence from China," Economic Modelling, Elsevier, vol. 86(C), pages 10-18.
    22. Jintao Ma & Qiuguang Hu & Weiteng Shen & Xinyi Wei, 2021. "Does the Low-Carbon City Pilot Policy Promote Green Technology Innovation? Based on Green Patent Data of Chinese A-Share Listed Companies," IJERPH, MDPI, vol. 18(7), pages 1-18, April.
    23. Valentina De Marchi & Eleonora Di Maria & Stefano Micelli, 2013. "Environmental Strategies, Upgrading and Competitive Advantage in Global Value Chains," Business Strategy and the Environment, Wiley Blackwell, vol. 22(1), pages 62-72, January.
    24. Charles J. Hadlock & Joshua R. Pierce, 2010. "New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index," The Review of Financial Studies, Society for Financial Studies, vol. 23(5), pages 1909-1940.
    25. Xu, Le & Fan, Meiting & Yang, Lili & Shao, Shuai, 2021. "Heterogeneous green innovations and carbon emission performance: Evidence at China's city level," Energy Economics, Elsevier, vol. 99(C).
    26. Valentina De Marchi & Matthew Alford, 2022. "State policies and upgrading in global value chains: A systematic literature review," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 88-111, March.
    27. Pipkin, Seth & Fuentes, Alberto, 2017. "Spurred to Upgrade: A Review of Triggers and Consequences of Industrial Upgrading in the Global Value Chain Literature," World Development, Elsevier, vol. 98(C), pages 536-554.
    28. Upward, Richard & Wang, Zheng & Zheng, Jinghai, 2013. "Weighing China’s export basket: The domestic content and technology intensity of Chinese exports," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 527-543.
    29. Dam, Lammertjan & Scholtens, Bert, 2012. "The curse of the haven: The impact of multinational enterprise on environmental regulation," Ecological Economics, Elsevier, vol. 78(C), pages 148-156.
    30. Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Do global value chains enhance or slog economic growth?," Applied Economics, Taylor & Francis Journals, vol. 53(36), pages 4148-4165, August.
    31. Liu, Hongxun & Li, Jianglong & Long, Houyin & Li, Zhi & Le, Canyu, 2018. "Promoting energy and environmental efficiency within a positive feedback loop: Insights from global value chain," Energy Policy, Elsevier, vol. 121(C), pages 175-184.
    32. Jan Hagemejer & Jakub Mućk, 2019. "Export‐led growth and its determinants: Evidence from Central and Eastern European countries," The World Economy, Wiley Blackwell, vol. 42(7), pages 1994-2025, July.
    33. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. 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.
    3. 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.
    4. Hu, Shuo & Wang, Ailun & Du, Kerui, 2023. "Environmental tax reform and greenwashing: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 124(C).
    5. 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.
    6. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lorenzo Cresti & Maria Enrica Virgillito, 2023. "Weak sectors and weak ties? Labour dependence and asymmetric positioning in GVCs," LEM Papers Series 2023/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    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.
    3. Stojčić, Nebojša & Matić, Matija, 2024. "A journey toward global value chain upgrading: Exploring the transition from backward to forward integration," Technology in Society, Elsevier, vol. 76(C).
    4. Stojčić, Nebojša & Matić, Matija, 2024. "A journey toward global value chain upgrading: Exploring the transition from backward to forward integration," Technology in Society, Elsevier, vol. 76(C).
    5. Zicheng Ma & Liang Wang & Xin Zheng & Jianqi Zhang, 2022. "National Innovation Systems and Global Value Chain Participation: The Role of Entrepreneurship," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 897-920, April.
    6. F. Colozza & R. Boschma & A. Morrison & C. Pietrobelli, 2021. "The importance of global value chains and regional capabilities for the economic complexity of EU-regions," Papers in Evolutionary Economic Geography (PEEG) 2139, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2021.
    7. Jun Jin & Zhengyi Zhang & Liying Wang, 2019. "From the Host to the Home Country, the International Upgradation of EMNEs in Sustainability Industries—The Case of a Chinese PV Company," Sustainability, MDPI, vol. 11(19), pages 1-19, September.
    8. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    9. Gideon Ndubuisi & Solomon Owusu, 2023. "Trade for catch-up: examining how global value chains participation affects productive efficiency," Journal of Productivity Analysis, Springer, vol. 59(2), pages 195-215, April.
    10. Tsakanikas, Aggelos & Caloghirou, Yannis & Dimas, Petros & Stamopoulos, Dimitrios, 2022. "Intangibles, innovation, and sector specialization in global value chains: A case study on the EU's and the UK's manufacturing industries," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    11. Scuotto, Veronica & Garcia-Perez, Alexeis & Nespoli, Chiara & Messeni Petruzzelli, Antonio, 2020. "A repositioning organizational knowledge dynamics by functional upgrading and downgrading strategy in global value chain," Journal of International Management, Elsevier, vol. 26(4).
    12. Akçomak, Ibrahim Semih & Bürken, Serkan, 2019. "The middle-technology trap: The case of the automotive industry in Turkey," MERIT Working Papers 2019-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Kailan Tian & Erik Dietzenbacher & Richard Jong‐A‐Pin, 2022. "Global value chain participation and its impact on industrial upgrading," The World Economy, Wiley Blackwell, vol. 45(5), pages 1362-1385, May.
    14. Rasmus Lema & Roberta Rabellotti & Padmashree Gehl Sampath, 2018. "Innovation Trajectories in Developing Countries: Co-evolution of Global Value Chains and Innovation Systems," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 345-363, July.
    15. Jung-In Yeon & Jeong-Dong Lee & Chulwoo Baek, 2021. "A tale of two technological capabilities: economic growth revisited from a technological capability transition perspective," The Journal of Technology Transfer, Springer, vol. 46(3), pages 574-605, June.
    16. Keijser, Charlotte & Belderbos, René & Goedhuys, Micheline, 2021. "Governance and learning in global, regional, and local value chains: The IT enabled services industry in South Africa," World Development, Elsevier, vol. 141(C).
    17. Carlo Pietrobelli & Roberta Rabellotti & Ari Van Assche, 2021. "Making sense of global value chain-oriented policies: The trifecta of tasks, linkages, and firms," Journal of International Business Policy, Palgrave Macmillan, vol. 4(3), pages 327-346, September.
    18. Brancati, Emanuele & Pietrobelli, Carlo & Mazzi, Caio Torres, 2021. "The Influence of Value-Chain Governance on Innovation Performance: A Study of Italian Suppliers," IZA Discussion Papers 14330, Institute of Labor Economics (IZA).
    19. Shengbing He & Huilin Yao & Zhou Ji, 2021. "Direct and Indirect Effects of Business Environment on BRI Countries’ Global Value Chain Upgrading," IJERPH, MDPI, vol. 18(23), pages 1-16, November.
    20. Lingyue Qiu, 2023. "Does Internet Infrastructure Construction Improve Corporate Green Innovation? Evidence from China," Sustainability, MDPI, vol. 15(1), pages 1-26, January.

    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:gam:jijerp:v:19:y:2022:i:14:p:8403-:d:859211. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.