Research On Relations Between China’s Economic Openness And Environmental Pollution

With Reform and opening up, and accession to the WTO, China’s economic openness level and growth potential have been enhanced significantly. These factors have prompted China’s economy sustained rapid growth. However, when we saw the rapid economic growth, but also should recognize the environmental pollution problems following with the economic openness. Now, the trend of factor price equalization revealed gradually, so the rapid growth trend of environmental pollution and economy may be changed. Past few studies systematically related to the relationship between economic openness and environmental pollution. The paper is fully on the basis of previous researches, and is from the angle both theoretical and empirical analysis. This study mainly includes the relationship between economic openness and environmental pollution, the relationship between environmental pollution and technological progress arising from economic openness, the relationship between foreign trade and environmental pollution, as well as the relationship between foreign direct investment and environmental pollution. So we can find the way of coordination of economic growth and environmental pollution in condition of open economy.This paper believes that due to changes of factor price equalization and changes of economic growth engine, economic openness will lead to economic growth and environmental pollution present for the EKC relationship. It means in the initial period of economic openness, economic growth trends to increase environmental pollution, and in the later period of economic openness, economic growth trends to decrease environmental pollution. Economic openness is not the higher the better; it should be a certain economic indicator needed control. The relationship between economic growth engine and environmental pollution is that, environmental pollution increase when the model of economic growth engine dependent on physical capital accumulation mainly, and environmental pollution decrease when the model of economic growth engine dependent on human capital accumulation mainly. Chinese data indicates that China is in the initial period of economic openness, economic growth trending to increase environmental pollution.The mechanisms and the results of import trade and export trade to exert influences on environmental pollution are different. Exports’ influence on environmental pollution can be divided into the scale effect, structure effect and technical effect. At present, the scale effect of the export trade stimulates environmental pollution, and structural effect eases environmental pollution, technical effect did not significantly influence on environment pollution. Imports of final products exert influences on environmental pollution are mainly due to production substitution effect, consumption pollution effect, technical effect. Imports of intermediate products exert influences on environmental pollution are also mainly due to scale effect, structural effect, technology effect. At present, import trade’s inhibition with the environmental pollution is not prominent, and it only inhibited the environmental pollution in the eastern part of China.The article believes that foreign direct investment can have an effect on environmental pollution through human capital. Human capital plays an important role on the coordination of foreign direct investment, economic growth, and environmental pollution. So, on the background of factor price equalization, accelerates human capital accumulation is important.Economic openness can promote technological progress, the relationship between environmental pollution and technological progress arising from economic openness has different performance in the different stages. In the current stage, technological progress can not play the role of control environmental pollution. After economic openness Continued in-depth, the comparative advantages of the polluting industries will disappearance, but technological progress may not necessarily come up with cleaning industry. Technological progress to select the direction of cleaner production is conditional, which include the talent base and technology base. Talent base mainly includes human capital.Due to the paper we can find the accumulation of human capital has a great significance. Human capital can alleviate environmental pollution through several ways, For example, accumulation of human capital is good for improve economic growth engine, is good for technological progress to select the direction of cleaner production, is good for the coordination between foreign direct investment and environmental pollution, and has the ability to promote economic growth. In addition, restructuring, technological progress and environmental management, also have positive side for environmental pollution control.At last, this paper presents some policy recommendations. Our country must unswervingly implement the open policies and take effective measures to promote technological progress, dynamically support factor endowments upgrade, and must pay attention to the economic structural adjustment continually. Our country also should promote human capital accumulation, especially promote the development of higher education. We should coordinate the export and import trade, mainly to expand the import trade. And then should establish a set of screening mechanism with introduction of FDI. In addition, we should continue to strengthen environmental legislation and environmental law enforcement, continue to strengthen the government management with the environment, changing the concept of officials’ view on performance, and so on.