Environmental Regulation And Global Value Chain Enhancement In China's Industrial Sector

Since the reform and opening up,China's economy has made remarkable achievements after decades of rapid development,and it became the world's second largest economy in 2010.However,with the rapid development of economy,the problem of environmental pollution has become increasingly serious Environmental pollution not only damages our living environment,but also greatly restricts the rapid development of China's economy.The traditional "extensive" development model no longer conforms to the current situation of China's economic development,so it is urgent to change the development concept to adapt to the changing economic situation.Since the 18th national congress of the communist party of China,China's economy has shown a new normal,shifting from high-speed growth to medium-high-speed growth,upgrading its economic structure,and shifting from factor-driven and investment-driven to innovation driven.This poses a new challenge to China's economic development.How to achieve the goal of environmental protection in the economic situation of the new normal,and promote the transformation and upgrading of China's industrial sector to move towards the middle and high status of the global value chain?Therefore,strengthening environmental regulation and enhancing the division of labor in the global value chain are the key issues for China's industrial sector in the period of tackling the key problem from high growth to high quality developmentAs for the research on the economic effect of environmental regulation,the existing scholars mainly carry out from the static aspect,believing that environmental regulation increases the production cost of enterprises and is not conducive to enhancing the productivity and international competitiveness of enterprises.But from a dynamic perspective "porter hypothesis" environmental regulation economic effect,can think environmental regulation of enterprise technology innovation to produce a reversed transmission mechanism,and promote enterprise's technological innovation,leading to the "innovation" effect,makes the innovation compensation effect in make up for the compliance costs at the same time,increase productivity and international competitiveness of the enterprise.Therefore,scholars are disputing about the economic effect of environmental regulation,and it is still necessary to study the dynamic economic effect of environmental regulation to verify the existence of "porter's hypothesis".Therefore,this paper studies environmental regulation affect China's industrial sector of the dynamic effect of the global value chain,based on the "porter hypothesis",from the perspective of resource allocation and technological innovation view demonstrates that environmental regulation is the key variable affecting the global value chain,using the panel autoregressive distributed lag model can be test at the same time an empirical analysis of the long-term effects and short-term effects model.At the same time,based on the existing literature,this paper innovates the measurement of global value chain index.In this paper,using the distance function to build the production process,can be solved by the method of using reference evaluation on the control of the added value of the actual distance between exports and optimal exports,according to the relative distance index,to establish the global value chain and Malmquist index method is used to put the global value chain is decomposed into global value chain technology index and efficiency index of global value chain,from technological progress and efficiency change investigation from the perspective of environmental regulation affect the specific path of global value chain.Empirical analysis was conducted by using the factual data of China's provincial industrial units from 2001 to 2016,The findings are as followsFirst,environmental regulation impact on the global value chain index exists obvious times feature,in the short term is not conducive to China's industrial sector of the global value chain,but in the long run,to strengthen environmental regulation is conducive to China's industrial sector of the global value chain,thus verified the existence of "porter hypothesis",confirmed on time dimension,environmental regulation through the technological innovation promoted the industrial sector of the global value chain.Second,environmental regulation affect the global value chain technology and global value chain efficiency index of short-term effect and long-term effect is significantly different,namely environmental regulation in the short term can't through technical efficiency of path and the path to improve China's industrial sector of the global value chain position,but in the long term to optimize the allocation of resources and promote the technological progress is an effective path of China's industrial enterprises to cope with environmental regulation.Third,among the control variables,industrial development level and human capital can significantly promote the global value chain of China's industrial sector in the long run.Capital structure,foreign trade dependence and marketization level are not conducive to the promotion of global value chain of China's industrial sector in the short and long termFinally,this paper puts forward four policy Suggestions based on the empirical analysis results.First,the policy of environmental regulation should be implemented for a long time.In the short term,the innovation compensation" effect caused by environmental regulation is small,and it is difficult to make up for the increased cost of environmental regulation.However,long-term environmental regulation can stimulate the motivation of technological innovation and enhance the productivity and international competitiveness of enterprises.Second,the government should establish a long-term mechanism to support the technological innovation of enterprises.As a driving force for industrial enterprises' transformation and upgrading,technological innovation can actively promote industrial enterprises to move towards the middle and high end of global value chain.Third,the government should optimize the implementation form of environmental regulation.If government departments can make use of various forms of environmental regulation,such as environmental tax,emission trading and sewage fee,according to local conditions,and give enterprises some flexibility,enterprises can achieve the goal of environmental protection with the best efficiency.Fourth,government departments should institutionalize the cultivation of innovative talents Innovative talents are the key for enterprises to improve their independent innovation ability.They can transform science and technology into productivity and improve the profit margin of enterprises.