Does environmental regulation affect global value chain position in service sectors? Evidence from 41 major economies

The increasing international division of production and stringent environmental policies coexist, which lets people focus more on the research on the relationship between environmental regulation and the global value chain (GVC). Based on the characteristics of service sectors, this study proposes h...

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Main Authors: Huiqun Liu, Lixin Chen, Yibing Shan
Format: Article
Language:English
Published: Frontiers Media S.A. 2022-10-01
Series:Frontiers in Environmental Science
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fenvs.2022.1051015/full
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author Huiqun Liu
Lixin Chen
Yibing Shan
author_facet Huiqun Liu
Lixin Chen
Yibing Shan
author_sort Huiqun Liu
collection DOAJ
description The increasing international division of production and stringent environmental policies coexist, which lets people focus more on the research on the relationship between environmental regulation and the global value chain (GVC). Based on the characteristics of service sectors, this study proposes hypotheses of how environmental regulation affects GVC position in service sectors and empirically investigates it by using panel data of the GVC position index in service sectors and the environmental performance index (EPI) from selected 41 major economies during 2006–2014. Our empirical study found the following: first, environmental regulation has significantly promoted the increase of GVC position in service sectors, which obviously can verify the validity of the Porter hypothesis. Second, environmental health has a greater effect on GVC position in service sectors than on ecosystem vitality. Third, the influence of environmental regulation on GVC position in service sectors is heterogeneous under different quantiles. The higher per capita income, the more stringent their environmental regulation and the stronger their impact on GVC position in service sectors. In general, this study will contribute to a better understanding of the relationship between environmental regulation and GVC.
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spelling doaj.art-2bd7c7260404406dae4534e66542190c2022-12-22T03:25:18ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-10-011010.3389/fenvs.2022.10510151051015Does environmental regulation affect global value chain position in service sectors? Evidence from 41 major economiesHuiqun LiuLixin ChenYibing ShanThe increasing international division of production and stringent environmental policies coexist, which lets people focus more on the research on the relationship between environmental regulation and the global value chain (GVC). Based on the characteristics of service sectors, this study proposes hypotheses of how environmental regulation affects GVC position in service sectors and empirically investigates it by using panel data of the GVC position index in service sectors and the environmental performance index (EPI) from selected 41 major economies during 2006–2014. Our empirical study found the following: first, environmental regulation has significantly promoted the increase of GVC position in service sectors, which obviously can verify the validity of the Porter hypothesis. Second, environmental health has a greater effect on GVC position in service sectors than on ecosystem vitality. Third, the influence of environmental regulation on GVC position in service sectors is heterogeneous under different quantiles. The higher per capita income, the more stringent their environmental regulation and the stronger their impact on GVC position in service sectors. In general, this study will contribute to a better understanding of the relationship between environmental regulation and GVC.https://www.frontiersin.org/articles/10.3389/fenvs.2022.1051015/fullglobal value chainenvironmental regulationservice sectorsenvironmental performance indexenvironmental policies
spellingShingle Huiqun Liu
Lixin Chen
Yibing Shan
Does environmental regulation affect global value chain position in service sectors? Evidence from 41 major economies
Frontiers in Environmental Science
global value chain
environmental regulation
service sectors
environmental performance index
environmental policies
title Does environmental regulation affect global value chain position in service sectors? Evidence from 41 major economies
title_full Does environmental regulation affect global value chain position in service sectors? Evidence from 41 major economies
title_fullStr Does environmental regulation affect global value chain position in service sectors? Evidence from 41 major economies
title_full_unstemmed Does environmental regulation affect global value chain position in service sectors? Evidence from 41 major economies
title_short Does environmental regulation affect global value chain position in service sectors? Evidence from 41 major economies
title_sort does environmental regulation affect global value chain position in service sectors evidence from 41 major economies
topic global value chain
environmental regulation
service sectors
environmental performance index
environmental policies
url https://www.frontiersin.org/articles/10.3389/fenvs.2022.1051015/full
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AT lixinchen doesenvironmentalregulationaffectglobalvaluechainpositioninservicesectorsevidencefrom41majoreconomies
AT yibingshan doesenvironmentalregulationaffectglobalvaluechainpositioninservicesectorsevidencefrom41majoreconomies