China's Foreign Trade, Research, And Environmental Issues

Along with the constant deepening of China's reform and opening to the outside world,china has achieved great economic results which have attracted worldwide attention.The development of trade especially the rapid development of the industrial products' export contributes a lot to the development of china' GDP,however,at the same time,there is a problem which should not be ignored that china' environmental condition keeps getting worse.In the long run,the environmental deterioration will certainly restrict China's development of trade and economy.The deteriorating environmental condition has already caused a lot of problems to people's work and daily life,the emergence of green trade barriers also keeps bringing new challenges to china's development of trade.Given the concerns mentioned above,the study on the relationship between china's trade and environment is of profound theoretical and practical significance.Besides preface and summarized introduction of related literature,this thesis discusses the relationship between china's trade and environment as follows:First,the thesis makes an analysis of the environment' character to indicate the fundamental cause of the environmental problem is that one of the environment' attributes is it's Negative Externality.The negative externality requires the government's policy to intemalize the externality.Because the govemment has more than one objective(such as the growth of the economy and the environmental protection),the environmental policy used to fail to achieve a perfect internalization.Second,the thesis makes a study on the changes of china's environmental condition and the development of china's trade since the inception of reform and open up policy. The results show the development of trade,especially the export of industrial products in china plays an important role in the deterioration of environment.Third,this thesis has a theoretical analysis of the relationship between china's trade and environment.First of all trade affects environment through 3 channels: composition effect,scale effect and technique effect which are based on the H-O theory.Secondly,china's special environmental policy and capital accumulation have an influence on the way trade affects environment.The relatively lenient environmental standards of china give itself a comparative advantage in pollution-intensive goods,so its trade harms environment.Besides,the capital accumulation in the process of china's industrialization has changed more or less its comparative disadvantage in some capital-intensive industries which are usually pollution-intensive at the same time.So the capital accumulation affects the relationship between trade and environment through the change of trade pattern.Finally,an equation is adopted to do a regression analysis.The estimation using pooled provincial data from 1996 to 2006 shows that the theoretical analysis is supported by empirical evidence.Then we get the conclusion and put forward some suggestions.