Value chain specialization and green economy performance: China's regional evidence

The process of international specialization has evolved from “intra-industry” to “intra-product,” resulting in the establishment of value chains that traverse all participating nations. However, it might lead to the “lock-in low-value” effect of global value chains (GVCs) and the consequential “pollution shelter” effect, which have both hindered the green transformation of the economy. Rather than solely focusing on promoting participation in GVCs, this paper seeks to expand its purview to include national value chains (NVCs) based on endogenous resource integration, with a focus on constructing and nurturing NVCs to enhance regional green economy performance index (GEPI). We find that improving NVCs positions can increase regional GEPI, while GVCs and NVCs participation inhibit GEPI. Moreover, the impact of GVCs and NVCs positions and participation on GEPI presents significant and spatiotemporal heterogeneities. Finally, the mechanism analysis demonstrates that GVCs positions increase human capital investment and NVCs positions increase the rationalization of the industrial structure, promoting green economy performance. Meanwhile, China's GVCs and NVCs participation increase the industrial proportion, which is not conducive to improving green economy performance. •Quantifying China's international trade's environmental effects through value chain specialization.•NVCs positions can strengthen the effect of the green economy performance.•Participation in value chain displays an adverse impact on green economy performance.•Investigating the heterogeneities of green economy performance along GVCs and NVCs position and participation.•Exploring channels through which of value chain specialization affect green economy performance.