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GVCs and environmental sustainability in MENA: Do digitalization and institutions make a difference?
Suzanna Elmassah1,2, Eslam A Hassanein3,4
1College of interdisciplinary Studies, Zayed University, Abu Dhabi, 144534, UAE. Suzanna.elmassah@zu.ac.ae.
Environmental Science and Pollution Research International
|November 12, 2023
Summary
Global value chain participation benefits MENA
Area of Science:
- Environmental Economics
- International Trade
- Sustainable Development
Background:
- Digitalization reshapes global value chains (GVCs), impacting environmental sustainability.
- Limited research exists on GVCs, digitalization, and environmental outcomes in the MENA region.
- Understanding these interactions is crucial for sustainable development policies.
Purpose of the Study:
- To analyze the impact of GVC participation on environmental sustainability in 15 MENA countries (1996-2018).
- To investigate the moderating roles of digitalization and institutional quality.
- To provide policy guidance for sustainable GVC integration in MENA.
Main Methods:
- System Generalized Method of Moments (SYS-GMM) Panel method.
- Random Effects method for robustness checks.
- Analysis of GVC participation, digitalization, institutional quality, and environmental indicators.
Main Results:
- GVC participation positively impacts environmental sustainability in MENA countries.
- Institutional quality and GVCs synergistically enhance environmental sustainability.
- Digitalization's interaction with GVCs has a negative environmental effect below a 10.23% threshold.
- The study supports the resource curse hypothesis, linking natural resources to environmental degradation.
Conclusions:
- GVC integration can foster environmental sustainability in MENA, especially with strong institutions.
- Digitalization policies require careful design to avoid negative environmental externalities.
- Addressing the resource curse is vital for achieving sustainable development alongside GVC participation.
Keywords:
DigitalizationEnvironmental SustainabilityGlobal Value Chains participationInstitutionsMENAMore Related Videos
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