Research On The Relations Between Foreign Trade And Environmental Pollution

With the development of economic globalization and environmental problems, international society would pay more and more attention to whether trade liberalization cause environmental quality deterioration, and whether trade policies can be used as an effective means to promote global environmental protection, so the inner relationship between trade and environment attracts many scholars begin to pay more attention to this field.In many environmental effects of trade models,Grossman and Kueger environmental effects of trade model is very influential in the world.According to Grossman and Krueger's research in 1993,the foreign trade's effects on environmental quality can conclude scale effect,income effect and industry structure effect.With the pace of reform,there is an economic boom in Henan Province.It can't be denied that,the development of foreign trade plays an important role in rapid economic growth in Henan.But at the same time,environmental pollution and emissions of pollutants become more and more severe as well. With development of economic,people begin to pay more attention to the environmental protect. Accordingly, this paper basically focuses on the relationships between foreign trade and environmental quality. In the empirical analysis,the writer uses Grossman and Krueger's environmental effects of trade theory and the annual time-series date of Henan's pollutant emissions indicators,foreign trade,gross domestic product,per capital income,structure of industry,trade openness,investment of environmental pollution treatment,to build models for cointegration analysis , as to research these variables'correlative relationships,including long-term cointegrated relations and short-term effects. And the writer try to explain the environmental effects of the trade from three aspects: the economic scale effect, income effect and industrial structure; then use granger causality test to analyze the causal relationship of the economic growth, trade and environment.The results of empirical analysis in henan province indicates that environmental pollutions are not the granger causes of trade growth, and environment quality deteriorations are not caused by the improvement of trade openness; negative co-integration relationship exists between trade and industrial dust emission, which means that trade growth helps to reduce industrial emissions of dust; negative co-integration relationship exists between per capita gross domestic product and sulfur dioxide, which means that the improvement of Per capita GDP helps to reduce emissions of sulfur dioxide and industrial dust; negative co-integration relationship exists between GDP and industrial wastewater , which means that GDP growth helps to reduce emissions of industrial waste water; positive co-integration relationship exists among GDP,sulfur dioxide and industrial dust emission,which means that GDP growth helps to increase emissions of industrial dust and sulfur dioxide, and economic growth increases the pressure on the environment; Trade growth and improvement of trade openness helps to economic's growth. It can be Theorically explained as below: trade helps to economical growth,;under the condition of invariable, greater economic scale activities will consume more energy, and produce more pollution emission, which means that the economic scale effect will make environmental degradation; however, with economic growth and improvement of income, the quality of the environment which people demand are also increasing, and this income effect helps the industrial structure to change to better and cleaner effective industrial structure. when economic growth to a certain level, the income scale effect surpass the scale effect, then the situation which the quality of the environment improve with growth of trade and economic will appear.In the meantime,it is a extremely complex problem,so we canfind that th ere are many heated dispute about it. There is even not adeterminate conclusion which most of peole agree to as far.This paper can only partially study on the relations between foreign trade and environment,so we have many problems to study in the field.