Global Value Chains and Environmental Performance Improvement in Developing Countries

Along with the increased trade integration of countries and the expansion of international production fragmentation, Global Value Chains (GVCs) amount to a huge part of trade today, and participation in a network of trade partners at downstream and upstream of the value chains brings about considera...

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Main Authors: Kazem Biabany Khameneh, Reza Najarzadeh, Hassan Dargahi, Lotfali Agheli
Format: Article
Language:fas
Published: Tarbiat Modares University 2022-03-01
Series:پژوهشهای اقتصادی
Subjects:
Online Access:http://ecor.modares.ac.ir/article-18-52759-en.pdf
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author Kazem Biabany Khameneh
Reza Najarzadeh
Hassan Dargahi
Lotfali Agheli
author_facet Kazem Biabany Khameneh
Reza Najarzadeh
Hassan Dargahi
Lotfali Agheli
author_sort Kazem Biabany Khameneh
collection DOAJ
description Along with the increased trade integration of countries and the expansion of international production fragmentation, Global Value Chains (GVCs) amount to a huge part of trade today, and participation in a network of trade partners at downstream and upstream of the value chains brings about considerable potentials such as the improvement of the flow of knowledge and more advanced production technologies and techniques, particularly for developing countries. It would not be unexpected for GVCs and participating in them from an environmental aspect to have potential benefits for countries as well. In this regard, the present study discusses the role that GVCs play in countries' environmental performance. For this purpose, a sample of 65 developing and 36 developed countries was investigated using spatial panel data econometrics, conditional convergence, spatial auto-correlation, and GVCs participation spillover and direct impacts for countries in the form of south-south, north-south, and north-north bilateral added-value trade. The results indicated that there was spatial auto-correlation and conditional convergence based on GVCs for all countries although they are more intense in the case of north-north trade in developed countries. Besides, participation in GVCs has spillover impacts on the trading partner countries if developed countries are included in the bilateral value-added trade but this impact is not statistically acceptable in south-south trade of developing countries according to estimations. Thus, establishing trading relations with developed countries through GVCs is a potentially beneficial policy to improve developing countries’ environmental performance.
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spelling doaj.art-5dbb60bb25a1489b807ede9fcd2e1a6a2023-06-15T20:26:03ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322022-03-01221132Global Value Chains and Environmental Performance Improvement in Developing CountriesKazem Biabany Khameneh0Reza Najarzadeh1Hassan Dargahi2Lotfali Agheli3 Ph.D. Candidate in Economics, Tarbiat Modares University, Tehran, Iran Associate Professor of Economics, Tarbiat Modares University, Tehran, Iran Associate Professor of Economics, Shahid Beheshti University, Tehran, Iran Associate Professor of Economics, Tarbiat Modares University, Tehran, Iran Along with the increased trade integration of countries and the expansion of international production fragmentation, Global Value Chains (GVCs) amount to a huge part of trade today, and participation in a network of trade partners at downstream and upstream of the value chains brings about considerable potentials such as the improvement of the flow of knowledge and more advanced production technologies and techniques, particularly for developing countries. It would not be unexpected for GVCs and participating in them from an environmental aspect to have potential benefits for countries as well. In this regard, the present study discusses the role that GVCs play in countries' environmental performance. For this purpose, a sample of 65 developing and 36 developed countries was investigated using spatial panel data econometrics, conditional convergence, spatial auto-correlation, and GVCs participation spillover and direct impacts for countries in the form of south-south, north-south, and north-north bilateral added-value trade. The results indicated that there was spatial auto-correlation and conditional convergence based on GVCs for all countries although they are more intense in the case of north-north trade in developed countries. Besides, participation in GVCs has spillover impacts on the trading partner countries if developed countries are included in the bilateral value-added trade but this impact is not statistically acceptable in south-south trade of developing countries according to estimations. Thus, establishing trading relations with developed countries through GVCs is a potentially beneficial policy to improve developing countries’ environmental performance.http://ecor.modares.ac.ir/article-18-52759-en.pdfglobal value chainscarbon intensityspatial econometricsvalue-added trade
spellingShingle Kazem Biabany Khameneh
Reza Najarzadeh
Hassan Dargahi
Lotfali Agheli
Global Value Chains and Environmental Performance Improvement in Developing Countries
پژوهشهای اقتصادی
global value chains
carbon intensity
spatial econometrics
value-added trade
title Global Value Chains and Environmental Performance Improvement in Developing Countries
title_full Global Value Chains and Environmental Performance Improvement in Developing Countries
title_fullStr Global Value Chains and Environmental Performance Improvement in Developing Countries
title_full_unstemmed Global Value Chains and Environmental Performance Improvement in Developing Countries
title_short Global Value Chains and Environmental Performance Improvement in Developing Countries
title_sort global value chains and environmental performance improvement in developing countries
topic global value chains
carbon intensity
spatial econometrics
value-added trade
url http://ecor.modares.ac.ir/article-18-52759-en.pdf
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AT rezanajarzadeh globalvaluechainsandenvironmentalperformanceimprovementindevelopingcountries
AT hassandargahi globalvaluechainsandenvironmentalperformanceimprovementindevelopingcountries
AT lotfaliagheli globalvaluechainsandenvironmentalperformanceimprovementindevelopingcountries