The Effect Of Environmental Regulation And Corruption On Economic Growth

Environmental issues are related to the livelihood of the citizens and social welfare,and they can also impact economic development.Moreover since environments are public goods,it determines that it can not be run by market to reduce pollution.But with the continuous development of society,people's awareness of environmental protection are increasing.Various environmental regulation policies and standards are dealing with the problem of environmental pollution which has become increasingly prominent.The system design of any country should both serve the economic and social development.In the view of this,if we can analysis the environmental regulation with economic growth and the transmission mechanism of their influences,thus it will have great significance for policy recommendations.This paper first introduced the environmental Kuznets curve.Then from the angle of the benefit and cost of environmental regulation,the relevant literature of economic growth and Foreign direct investment,industrial structure and technology are discussed.The part of theoretical basis mainly covered China environmental policy development process,regulation classification based on the existing literature;the control effect,incentive effect,regulation cost and uncertainty of command and control regulation,market and social environmental regulation are discussed;then the development of the environmental regulation theory are described,and the methods to measure the regulation policy on the basis of previous studies are summarized.Integrity and efficiency of Chinese government and the commonly used measurement of corruption are described.Secondly,It also expounded the mediating effects in which FDI,industrial structure and technological are intermediary factors.Combined with the main variables of economic growth and FDI and technological progress,this paper processed the data of the environmental regulation and the index of corruption.Finally,based on the theoretical analysis,this paper tested the robustness of the model.Then according to the relationship between environmental regulation and economic growth,the theory model was designed based on game theory to distinguish between the effects of two types of environmental regulation.Then the panel data model and the mediating effect model were constructed to investigate the impact of different types of environmental regulation on economic growth.The method of sequential test and bootstrap sampling were used to test the mediating effect of FDI,industrial structure and technological progress.At the end,through the empirical analysis the corresponding conclusions were obtained,and according to the conclusions of theoretical analysis,and to the characteristics of the actual situation of each provinces and the different types of environmental regulation,thus this paper put forward the feasible policy recommendations to promote the improvement of economic growth,to achieve win-win between economic growth and environmental protection.