The Empirical Study Of Environmental Regulation On Trade Comparative Advantage

Under the new economic normal,China’s trade economy has developed vigorously.In the past,blindly pursuing the economy and neglecting the pollution caused by the environment has attracted attention.China’s introduction of relevant rules and regulations strictly requires enterprises to follow the environmental protection code in the process of production and trade.The concept of sustainable development requires the protection of the environment while promoting the growth of foreign trade.Therefore,studying the impact of environmental regulation on the comparative advantage of trade is of profound significance.This paper first introduces the importance of trade comparative advantage and its impact pat,and uses literature research,regression analysis and comparative analysis to conduct research and analysis.In the literature review section,the article has combed the relevant literature.Combined with the research of scholars in the past,this civilization has two theoretical mechanisms that influence the comparative advantage of trade:one is the distortion of resource allocation and the other is the effect of technological innovation.Specifically,what kind of effect is stronger needs to be analyzed according to the specific situation of China’s industrial industry.In the empirical analysis stage,this paper selects the comparative advantage and environmental regulation data of 24 industry trades in China from 2003 to 2012,and establishes a fixed-effect regression model for empirical testing.Taking into account the industry heterogeneity adjustment function based on pollution intensity,the 24 industries involved in the sample data are classified into heavy pollution industry and light pollution industry for classification and regression.At the same time,the article uses the increase and decrease variables and GLS estimation method to verify the robustness of the model,and solves the endogeneity problem with the lag one-stage method.The study found that for the overall sample,the impact of environmental regulation on trade comparative advantage is "U" type,but when introducing industry heterogeneity,for heavy polluting industries,the intensity of environmental regulation is negative for trade comparative advantage.But the "U" curve opening is smaller and steeper;for lightly polluting industries,the effect is "U" type.This paper combines the resource endowment theory and the Porter hypothesis to explore the role of reverse environmental regulation on trade influence advantages,enrich the study of environmental and trade relations,and try to provide some inspiration for reasonable environmental regulation intensity and trade competitive advantage.