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Global value chains participation and environmental pollution in developing countries: Does digitalization matter?

Author

Listed:
  • Essossinam Ali
  • Hodabalo Bataka
  • Kwami Ossadzifo Wonyra
  • Nadège Essossolim Awade
  • Nèmè Nalèwazou Braly

Abstract

The study analyses the effect of global value chains participation (GVCP) on CO2 emissions and assesses whether digitalization technologies can enhance environmental quality. We use panel data estimation techniques for 112 developing countries over the period 1990–2018. Findings show that the GVCP contributes to environmental degradation. Other factors that increase environmental damage include FDI inflows, industrial value‐added and electricity consumption. However, renewable energy consumption significantly reduces CO2 emissions. Findings show that digitalization is an effective channel in reducing CO2 emissions in the GVCP in developing countries. These findings have important policy implications in exploring the GVCP's development dynamics in upgrading opportunities from digital technologies to reduce environmental pollution and promote sustainable growth in developing economies.

Suggested Citation

  • Essossinam Ali & Hodabalo Bataka & Kwami Ossadzifo Wonyra & Nadège Essossolim Awade & Nèmè Nalèwazou Braly, 2024. "Global value chains participation and environmental pollution in developing countries: Does digitalization matter?," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(1), pages 451-478, January.
    • Handle: RePEc:wly:jintdv:v:36:y:2024:i:1:p:451-478
    DOI: 10.1002/jid.3823
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