2024/17 | LEM Working Paper Series | ||||||||||||||||
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Decarbonisation and Specialisation Downgrading: the double harm of GVC Integration |
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Giovanni DOsi, Federico Riccio and Maria Enrica Virgillito |
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Keywords | |||||||||||||||||
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Structural Change, CO2 Emissions, Global Value Chains
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JEL Classifications | |||||||||||||||||
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F18, L16, O14
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Abstract | |||||||||||||||||
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This work assesses the double harm of Global Value Chain (GVC)
integration. Firstly, we take a within-country structural change
perspective and investigate how the internal structure of country
production, and thus the ensuing emission profile, evolves across
development phases. Assessing the structural change-emissions nexus is
necessary to understand how to reconcile growth and sustainable
development. Secondly, we look at the cross-country dimension,
embracing how the changing geography of production affects the
environment. We find evidence that the relocation of production toward
developing countries via GVCs has negatively impacted worldwide
emissions and document that GVCs are progressively becoming a carrier
of industrial and ecological downgrading for developing countries.
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