Does Climate Change Affect the Participation of Developing Countries in Global Value Chains?

This study provided empirical evidence for the analysis of the link between climate change and participation in global value chains in developing countries. The study used a panel model with a system-based GMM estimation technique on a sample of 27 developing countries from 2005 to 2019. The empirical results show that climate change significantly and negatively affects the participation of developing countries in global value chains. These results hold regardless of the country's position in global value chains. The study suggests that improving the participation of developing countries in GVCs would require policies to make countries resilient to climate change while taking the issue of fighting corruption seriously