Pathway to green growth: A panel-ARDL model of environmental upgrading, environmental regulations, and GVC participation for the Chinese manufacturing industry

Since the opening up of China, its manufacturing sector contributed significantly toward economic development on one hand and caused elevated environmental pollution heavy resource consumption problems other hand. Green productivity is an essential means addressing promoting sustainable performance long-term growth. When factors affecting green total factor energy (GTFEP) are studied in recent years, hitherto literature lacks relationship between GTFEP, regulations, global value chain (GVC) participation. Using GTFEP as a proxy upgrading for Chinese industry, this study investigates nexus regulation index (ERI), production length (TPLI). Based panel data 18 industries from 2000 to 2014, current employed pool mean group estimators auto-regressive distributed lag model (ARDL) estimated long-run variables. Findings revealed positive effect ERI GVC participation (TPLI) industry. Furthermore, pairwise causativeness analysis indicated unidirectional causality ERI, running ERI. research findings, some conclusions policy implications derived, such strict enforcement industry-specific policies, promotion clean resources, acceleration country’s further opening-up reforms. All these will help promulgate sector, thus leading decoupled pollution.