Analysis Of Impact Of Environmental Regulation On The Competitiveness Of Jiangsu's Manufacture

As two important aspects of the strategy of sustainable development,the relationship between environmental protection and transformation and upgrading of manufacturing industry has always been a focus of research.Manufacture in Jiangsu has maintained its regional GDP at about 50%for a long time,and has occupied an important position in the country.It is in the transition period from a "big manufacture province" to a "strong manufacture province." Jiangsu is one of the regions with a relatively high degree of economic openness in China.While developing its economy and trade,the pollution from industrial and construction sites have been increasing.Environmental pollution incidents have emerged constantly and the government also strengthens its efforts to control pollution.At the same time,according to the increasing production costs of manufacturing companies and low industrial competitiveness under pressures about resource and environment,there are some problems about lack of growth potential,insufficient effective supply,large-scale and weak manufacture.According to the externality theory and innovation compensation theory,the implementation of appropriate environmental regulation measures is a key way to increase manufacturing productivity and profitability.The development of the manufacture is not only closely related to the strategy of revitalizing the real economy in Jiangsu,but also related to the process of achieving the transition from a large manufacturing province to a strong manufacturing province.From the perspective of environmental regulation,this paper explores the competitiveness of the manufacture under the influence of environmental regulation,and establishes an analytical framework for the relationship between environmental regulation and industrial competitiveness.It will improve environmental policy in Jiangsu,promote technological innovation,and realize green manufacturing development.From the perspective of environmental regulation in manufacture,this paper focuses on the following three aspects:At first,analyzes the development and characteristics of the intensity of pollution emissions and environmental regulations.The comprehensive index method is used to measure the pollution emission intensity of manufacture.And the paper describes the evolutionary trends and characteristics of environmental regulations in the heavy pollution and medium pollution industries during the sample period.And then,analyze the competitiveness of the manufacture as a whole and in different types of industries,and estimate profit and total factor productivity by Solow residual values for heavy pollution and medium pollution industries.Next compare the differences in productivity between heavy pollution and medium pollution industries.Finally,analyze of the relationship between the level of environmental regulation and Jiangsu's manufacturing competitiveness,and establish an industrial competitiveness model using the method of generalized moment estimation in order to analyze the cost compensation effect and innovation compensation effect of environmental regulation.This article selects data from the Jiangsu Statistical Yearbook in 2003-2015.The main conclusions are as follows:First,the level of environmental regulation in the manufacturing industry in Jiangsu showed a watershed state in 2010.Before 2010,the intensity of environmental regulation in Jiangsu was in a relaxed state and after 2010,environmental regulation measures gradually became stricter.The polluting industry was stronger than the clean industry.Then,the distribution of total factor productivity and profit in the heavy pollution and medium pollution industries are different.The profit of Jiangsu's manufacture peaked in 2011,and then the volatility is greater;total factor productivity is on an upward trend,and the quality of growth throughout the period continuously improved.There are significant differences in productivity and profit across industries.In the end,the innovative compensation effect and cost compensation effect of environmental regulation exist in different industries.It is found that the relationship between environmental regulation and the competitiveness of heavy pollution industries is an "inverted U-shaped" relationship,while the medium pollution industry is negative,which verifies the existence of two effects.According to the conclusions,this paper proposes the following three recommendations:Implement environmental regulation measures aimed at different industries,and improve environmental policies;Improve the market of emission rights trade;Encourage enterprises to attract foreign capital and advanced technologies to improve competitiveness.