Environmental regulation and global value chain division position：Analysis based on global transnational data

Abstract

Based on the CEPII BACI six-digit import and export product data from 2009 to 2019 and the WDI database of the World Bank, this paper uses the bilateral stochastic frontier analysis model to calculate the global value chain (GVC) bargaining power index of 131 countries or regions in the world, and measure their GVC division position. This paper also uses an environmental performance index to represent the intensity of environmental regulation. A panel data model is then established to test the impact of environmental regulations on GVC division position. The results show that: (1) Environmental regulation has an inverted U-shaped nonlinear effect on GVC division position, which initially increases and then decreases; (2) The mechanism is that appropriate environmental regulation can promote scientific and technological progress, but that strict environmental regulation can inhibit scientific and technological progress; (3) The effect of environmental regulation on GVC division position only occurs in regions of poorly developed countries, during the period of global economic change after 2012, and in polluting industries.