Can embedding in global value chain drive green growth in China’s manufacturing industry?

• Published in: Journal of cleaner production 2020-09, Vol.268, p.121962, Article 121962
• Main Authors: Qu, Chenyao, Shao, Jun, Cheng, Zhonghua
• Format: Article
• Language: English
• Subjects: China; Embedding degree; Embedding position; Global value chain; Green growth
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2020.121962

Whether embedding in global value chain(GVC)can promote China’s manufacturing industry green growth is of great importance for China to accelerate the realization of green economy transformation and building of China’s high-quality modern ecological economic system. This paper analyzes the impact of embedding in GVC on China’s manufacturing industry green growth from perspectives of embedding position and embedding degree, using panel data from 17 manufacturing industries from 2000 to 2014. The study finds that during the inspection period, GVC embedding position and embedding degree of China’s manufacturing industry have a fluctuation and there is a large difference between industries, most industries are still in the downstream of GVC, and low-tech industries embedding in GVC to a deeper degree. In the meantime, China’s manufacturing industry green growth level has declined, and green growth situation is not optimistic. Dynamic panel results show that raising the GVC embedding position can significantly promote China’s manufacturing industry green growth. Further, threshold regression is used to find that when the embedding position crosses a certain threshold, the effect of increasing the GVC embedding degree on green growth changes from inhibition to promotion. And the effect of GVC embedding position and degree on China’s manufacturing industry green growth has significant industry heterogeneity. Finally, based on the research conclusions, concrete implications for promoting China’s manufacturing industry green growth are put forward: First, China should improve the GVC embedding position of manufacturing industry and enhance the value-added and control capabilities of the value chain. Second, China should increase the GVC high-end links embedding degree of manufacturing industry. While realizing value chain functional upgrading and chain upgrading, increase GVC embedding degree. Third, China should accelerate energy technology innovation, promote the development of new energy, and accelerate the transformation of energy consumption structure. Last of all, China should implement industry differentiation policies, enhance the overall competitiveness of the high-tech industry, and achieve the “essential” improvement of the GVC position of the low-tech industry. At the same time, for all industries, China must improve the level of environmental regulation, increase R&D investment, and reduce the proportion of coal consumption and the proportion of state-