Spatiotemporal Dynamics in Economic, Social, and Environmental Upgrading in China: Coupling Coordination and Influencing Factors

Abstract

The focus on the concept of upgrading in the study of global production networks has expanded from economic upgrading to encompass social and environmental upgrading. However, rare research pays attention to the complex interplay among these three aspects. This paper tries to integrate the economic, social, and environmental upgrading into an analytical framework through the lens of coupling coordination. Using the Granger causality test and panel regression model, it provides empirical evidence and an explanation of the triad’s interaction based on the Chinese case study. It is found that, over the past twenty-five years from 1996 to 2020, China has seen a significant improvement in the coupling coordination of economic, social, and environmental upgrading with the coordination degree rising from 0.35 to 0.51, though it remains at a low level of coordination. Regional disparities in economic upgrading are more pronounced than those in social and environmental upgrading, and the inter-group disparities between economic and environmental upgrading have widened following the economic crisis. Panel regression analysis shows that economic globalization, public governance, legal environment, and environmental regulation positively influence the coupling coordination of the three types of upgrading, while economic privatization and corporate violations of law tend to have a negative impact.