The Impact Of Environmental Regulation On Firm Relocation From The Perspective Of Cost

With the rapid development of the new industrialized economy,under the background of supply-side reform,the continuous upgrading of national environmental regulations and the differences in regional environmental regulations have made firm relocation impossible to avoid,and environmental regulation has become an important reason for firm relocation.However,firm relocation decisions under environmental regulations are largely affected by environmental upgrade costs and relocation costs.The cost subsidies for local governments to provide enterprises with R&D financial subsidies and incentives for enterprises to move in are increasing,which are important interventions for firm relocation decisions.In the case of an increase in the intensity of local government environmental regulation,whether the enterprise will choose to relocate depends on the estimated cost of the firm relocation decision.Based on the theory of government intervention,resource dependence theory and cost decision theory,this paper selects the panel data of 524,205 enterprises in in12 years of Chinese Industrial Enterprise Database as a sample,analyzes the impact of local government environmental regulation on firm relocation behavior.This paper further explores the adjustment effect of enterprise R&D innovation and enterprise relocation cost on the relationship between the environmental regulation and firm relocation behavior.The results show that the local government environmental regulation is positively related to the firm relocation behavior.The enterprise R&D innovation and relocation cost negatively regulate the relationship between local government environmental regulation intensity and firm relocation behavior.The regulatory effect is heterogeneous in different regions.According to the further examination based on the nature of property rights and whether or not it is listed company,the influence of local government environmental regulation on the relocation behavior of different types of enterprises is significantly different.The negative adjustment effect of enterprise R&D innovation and corporate migration costs is particularly significant among private and non-listed companies.Based on the empirical results,this paper concludes with relevant policy recommendations around the central government,local governments,and enterprises.The above research provides empirical evidence for the micro-effects of environmental regulation policies from the perspective of enterprise cost,enrichesand expands the existing research on the influencing factors of firm relocation behavior.What's more,the research can help the government accurately find indicators that interfere with the firm relocation decision-making model,which can guide the firm to make scientific relocation decisions.It also has important reference significance for achieving the coordinated development of regional environmental protection and economic construction.