The Path Of Economic Growth Under Environmental Constraints——from Closed Economy To Open Economy In An Endogeneity Framework

Since the reform and opening-up, China has become one of the fastest growing economies in the world, obtaining remarkable chievements.However,owing to the extensive growth mode of "high input, high emissions, high consumption", Chinese has paied expensive environmental costs. After joining the WTO,"two high and one capital" industries are transfering to China, which further exacerbates our resource pressure and the degree of environmental degradation. Therefore, the problem of the environment and economic growth is urgently needed to solve.Combing through the relevant literature, based on the human capital model of Lucas (1988). intermediate goods level innovation endogenous growth model framework of Romer (1990). Grossman and Helpman (1991). This thesis makes environmental factors endogenous to establish an asymbiotic evolutional endogenous growth model with of environmental constraints, human capital and technological progress. The study found that:(1) as long as the human capital technological progress (or the accumulation of knowledge) grow faster than the speed of the pollution generated by the accumulation of physical capital, the pollution control costs will be offset.and long-term economic growth will converge to a balanced growth path;(2) from the closed economic expansion to an open economy.this thesis finds that of small countries, the growth effects of trade depends on the mode of their participation in the international division, and not taken the research and development of clean technologies into account, the impact of trade on environmental quality is uncertain, which dependens on the growth effects of trade openness.Based on the above analysis, in the context of economic globalization, the paper argues that the government should focus on endogenous technological progress and human capital accumulation.In the formulation of trade policy, the uncertainty of the impact of trade openness on the environment should be fully taken into accountas to reduce "input" of environmental pollution.Especially for developing countrie--s.trade liberalization often means choice betwwen economic growth and decline of environmental quality.