Environmental Regulation?Technological Progress And Provincial Trade In Pollution-intensive Industries

After the reform and opening up,Chinas economic development and people' s living conditions have been greatly improved after more than 40 years of rapid development.However,under the rapid development model,serious problems of environmental pollution and ecological deterioration have also emerged.Under the background of structural reforms in the new normal economy and supply side,the use of environmental regulation measures to adjust the relationship between economic development and environmental pollution is a major policy currently being implemented in China.However,the increase in the intensity of environmental regulation may increase the production costs of pollution-intensive industries and reduce the profitability of enterprises.Differences in environmental regulation among regions will allow companies to reconsider industrial layout and transfer industries.Based on this,this article researches the relationship between environmental regulation and pollution-intensive industries at the provincial level,and analyzes how environmental regulation affects the inter-provincial trade of pollution-intensive industries in China from the perspective of technological progress,and combines empirical analysis.This paper firstly selects the inter-provincial trade data of China's 2012 pollution-intensive industries,uses the instrumental variable approach to solve the endogenous problems of environmental regulation,studies the impact of environmental regulation on the inter-provincial net exports of pollution-intensive industries,and checks whether there is“pollution evacuation”between domestic provinces.The phenomenon.Based on this,the model joins the trade flow dummy variable to explore whether the pollution-intensive industries shift from provinces with high levels of economic development to provinces with low levels of economic development.Finally,from the perspective of technological advancement,it examines the influencing factors of inter-provincial trade in pollution-intensive industries and analyzes the transmission mechanism between environmental regulation,technological progress,and inter-provincial trade in pollution-intensive industries.In view of the domestic "pollution haven" test results show that:(1)of the environmental regulation and pollution intensive industry in east China provinces net exports were positively significant relationship,there was no clear evidence that the"pollution haven" in our country.(2)from the trade flows,the higher level of economic development in the province and one of the main output of pollution area,showed no pollution intensive industries to less developed areas from the economic developed provinces.(3)the environmental regulations in the eastern region have a positive impact on the international net export of the provincial pollution industry,which is similar to the inter-provincial trade.From the Angle of technological progress research on environmental regulation and pollution intensive industry it is concluded that:(1)the eastern province of provincial trade relations pollution industry technology progress significantly affect their provincial net exports,and environmental regulation significantly influence the eastern province of technological progress.That is,the intensity of environmental regulation has reached the inflection point of the "potter" hypothesis.The increasing intensity of environmental regulation in the central and western regions has an unknown effect on the technological progress of polluting enterprises.(2)After removing the endogenous nature of technological progress,it is concluded that environmental regulation in the eastern region will not promote the technological progress of foreign companies and then affect the production scale of foreign companies.