Research On The Impact Of Environmental Regulation On The Export Behavior Of Chinese Enterprise

With the reform and opening up,China has achieved great success in economic growth,however,this rough development with high consumption and pollution has brought great problems to the environment.In recent years,Chinese government has put great emphasis on the environment protection and launched a series policies dealing with the pollution abatement.This paper uses "TCZ" Policy,a natural environment experiment,and combines the heterogeneous firm theory with the environment regulation to investigate the effect of environment regulation on the behavior of exporters.This paper also applies the Chinese micro data to do the empirical analysis.Different from the previous studies,this paper focuses on the firm heterogeneity and combines firm heterogeneous model with environment regulation.Considering the multi-product producers are the major exporters,this paper then extends the single-product firm model to the multi-product firm model and test the effect of environmental regulation on the product scope and firm internal reallocation.The chapters are as follows:First chapter is introduction.In this part,this paper introduces the importance of the topic,main content,method and the novelty.Second chapter is literature review.In this chapter,this paper summaries the related literature.The third chapter is the effect of environmental regulation on China export.First,it introduces the policy background and analyzes the accomplishments of pollution abatement.In the empirical part,use "TCZ",this natural experiment,combining with the Chinese firm level data to test the effect of environmental regulation on exports.The Forth chapter is to test the effect of environmental regulation on firms’ dynamic decisions.First,combining the firm heterogeneous model with the environment regulation and provide the intuition of the effect of environmental regulation on firms’ exit and entry.Second,in the empirical part,use the Chinese micro data to test its effect on firm productivity,entry and exit decision and aggregate outcome.The fifth chapter is the effect of environmental regulation on firm product scope or product mix.First,extend the single-product firm model to the muli-product firm model and combine the Chinese micro data to do the empirical analysis.The Sixth chapter is the conclusion.The main conclusiongs are:1.Environmental regulation and exports.This paper finds that after pollution abatement being related to the performance evaluation system,each province shows significant increased effort on pollution abatement and most of them have accomplished the pollution reduction target.From the result of DDD specification,it shows that strict environmental regulation has relatively negative effect on the dirty sectors’ exports in TCZ cities and this result is quite robust under different model specification.2.Environmental regulation and firm dynamicsAdding the environment regulation to the heterogeneous firm model,this paper finds that strict regulation will increase the productivity cutoff φ*,namely,lower TFP firm would exit from the market and resources would be reallocated within the industry.From the results of the empirical study,it confirms that strict regulations do have significant effect on firms’ exit but hardly show significant and robust effect on firms’ entry and exports of the surviving firms.By decomposing the aggregate TFP,this paper finds that different from the previous literature,although strict environment policy induces some negative effects on firm productivity,it can through the exit of low productivity to improve the aggregate TFP,neglecting this channel would overestimate the negative effect of the environment policy.3.Environmental regulation on firm product scopeIn this part,it studies the mechanism of environmental regulation on firm internal reallocation by extending the single-product firm model to the multi-product firm model.And combining with the data,it finds that regulation has significant effect on dropping the margin product,however,the ’adding’ effect is not significant.Meanwhile,to those exported products,the ’level change’ brought by the regulation is not significant,but it has significant effect on the ’relative change’.In addition,the empirical study shows some support to the proposition that higher TFP firm has lower pollution intensity.