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Global Value Chain Participation and Sustainable Growth: Evidence from China

Author

Listed:
  • Huan YAN

    (Institute of Industrial Economics, Chinese Academy of Social Science)

  • Xiaojing LI

    (Shanghai Development Research Institute, Shanghai Party Institute of CPC.)

  • Shuang MENG

    (School of International Trade and Economics, Central University of Finance and Economics.)

Abstract

Utilizing panel data of China’s industrial sectors from 2000 to 2014, this study explores the causal relationship between GVC participation and sustainable growth measured by green total factor productivity (GTFP). The results show that both forward and backward participation have a positive impact on GTFP, and the former is more significant. Specifically, both simple and complex activities of forward GVC participation show a positive effect on GTFP, while only complex activities of backward participation show a positive effect. Mediation analyses suggest that GVC participation affects sustainable growth through two channels: environmental regulation and technology spillover. Moreover, GTFP responses to GVC participation vary by technology orientation, pollution intensity, and FDI intensity.

Suggested Citation

  • Huan YAN & Xiaojing LI & Shuang MENG, 2023. "Global Value Chain Participation and Sustainable Growth: Evidence from China," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 5-20, June.
    • Handle: RePEc:rjr:romjef:v::y:2023:i:2:p:5-20
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    References listed on IDEAS

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    More about this item

    Keywords

    sustainable growth; green total factor productivity; global value chain; mechanism analysis.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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