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<p>Amid the increasing fragmentation of global production, China’s integration into global value chain (GVC) has significantly influenced both its economy and air pollution. While existing research has overlooked spatial mechanisms, this study draws upon theories of spatial spillovers and global production networks to examine how GVC embeddedness affects urban air pollution through direct and indirect channels. Specifically, we highlight three mechanisms: the siphoning effect that concentrates resources in GVC hubs, structural similarity among neighboring cities due to agglomeration, and spillovers arising from intercity competition, factor mobility, and industrial linkages. Using panel data for 264 prefecture-level cities from 2003 to 2013, we employ a spatial Durbin model (SDM) with dynamic spatial weight matrices based on capital and labor flows. Results reveal that GVC embeddedness significantly reduce air pollution both directly within cities and indirectly through spatial spillover effects, with the latter contributing to 96% of the total impact. These effects are particularly pronounced in central and western cities, in cities enforcing stringent environmental regulations, and in those with advanced digital economic frameworks. Moreover, the spillover effects are most pronounced within 50&#xa0;km and gradually weaken with distance. These findings underscore the potential for cities in developing economies to strategically leverage GVC participation to align economic growth with enhanced environmental governance and industrial upgrading, fostering sustainable development.</p>

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Does GVC embeddedness alleviate air pollution in Chinese cities? A Spatial spillover perspective

  • 期刊论文

  • 发表日期：

    2025年11月26日

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  • Siqi Wu,
  • Yilin Chen

摘要

Amid the increasing fragmentation of global production, China’s integration into global value chain (GVC) has significantly influenced both its economy and air pollution. While existing research has overlooked spatial mechanisms, this study draws upon theories of spatial spillovers and global production networks to examine how GVC embeddedness affects urban air pollution through direct and indirect channels. Specifically, we highlight three mechanisms: the siphoning effect that concentrates resources in GVC hubs, structural similarity among neighboring cities due to agglomeration, and spillovers arising from intercity competition, factor mobility, and industrial linkages. Using panel data for 264 prefecture-level cities from 2003 to 2013, we employ a spatial Durbin model (SDM) with dynamic spatial weight matrices based on capital and labor flows. Results reveal that GVC embeddedness significantly reduce air pollution both directly within cities and indirectly through spatial spillover effects, with the latter contributing to 96% of the total impact. These effects are particularly pronounced in central and western cities, in cities enforcing stringent environmental regulations, and in those with advanced digital economic frameworks. Moreover, the spillover effects are most pronounced within 50 km and gradually weaken with distance. These findings underscore the potential for cities in developing economies to strategically leverage GVC participation to align economic growth with enhanced environmental governance and industrial upgrading, fostering sustainable development.