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Can Environmental Regulation Enhance the Division Status in Global Value Chain ? Empirical Evidence from Manufacturing Industry of China

HAN Meng-meng1,YAN Dong-sheng2   

  1. (1. Business School, Nanjing University, Nanjing 210093,China; 2. Yangtze Industrial Economic Institute, Nanjing University,Nanjing 210093,China)
  • Received:2020-06-26 Online:2020-10-19

Abstract: Based on the world input-output table provided by WIOD website in 2016 and the panel matching data of China′s manufacturing industry, this paper calculates global value chain division status index of China′s manufacturing industries from 2005 to 2014, and empirically tests the impact of environmental regulations on the division status of China′s manufacturing industry in the global value chain.The results show that, when other control conditions remain unchanged, environmental regulation has a significantly and steadily positive role in promoting division status in manufacturing industry global value chain.The heterogeneity analysis shows that the influence of environmental regulation on the division status of manufacturing industry in the global value chain is also different with different industry factor concentration and pollution degree. Among them, capital intensity has a significantly negative moderating effect on the influence of environmental regulation on the division status in manufacturing industry global value chain, and the degree of industrial pollution has a certain negative moderating effect on the influence of environmental regulation on the division status in manufacturing industry global value chain, but it is not significant.The conclusion shows that we should promote the division of labor status of China′s manufacturing industry in the global value chain through the dynamic correlation between environmental regulation and industrial development, gradually improve the screening criteria for investors, especially foreign investors, to invest in China, and continue to increase the innovation R&D and personnel training, so as to provide solid technical support for the upgrading of global value chain status.

Key words: environmental regulation, division status in global value chain, manufacturing industry