A Research On The Effect Mechanism Of Environmental Factors Upon Trade Related Industries

In recent years, the trends of unfair allocation of environmental resources and degeneration of natural resources among international trade activities are more and more serious, leading to a series of worldwide discussions relating trade and environment in almost every aspect and field. Meanwhile, environment challenges to current pattern of international trade have made people concerning about whether the competitiveness of trade-related industries is weakening or not. In this background, as a big country in international trade, China has achieved rapid growth in foreign trade in past two decades, however, it has not only paid heavy environmental costs due to lag of sustainable development strategy and lack of effective industrial policy, but also has to face serious challenges from international competition towards Chinese industries. Therefore, how to improve competitiveness of China's trade-related industries and maintain sustainability of these industries have become an urgent task to be solved.On the base of Porter's Diamond Model, the thesis starts with practical relation between environmental factors and competitiveness of trade-related industries, establishes a model and coefficient matrix to reveal their correlation on a national and industrial level. After considering environment as a key element, the thesis builds up a modified model of industrial competitiveness, and especially analyzes effects mechanism upon competitiveness of trade-related industries, which lays theory foundation for adjustment of industrial policy and redirection of trade strategy as well as conforms to the trend of building circle economy and economical society.The thesis consists of five chapters: Chapter 1 introduces research subject, implications, research main ideas and research methods, and also makes a brief introduction of findings on trade and environment. Chapter 2 analyzes current research findings achieved by foreign and Chinese scholars, and especially illustrates Porter's Advantage Theory of National Competitiveness, and then describes five hypotheses about environment effects upon industrial competitiveness. Chapter 3 is an empirical part, and the thesis tries to build up a model on a macroeconomic level to find out that there is a positive effect of capital input of environment improvement upon China's export sum. Then the thesis lists methods to weigh trade-relatedindustries and environmental factors on industrial level, and then adopts a coefficient matrix to illustrate the correlation between them in all trade-related industries. Chapter 4 is the most important chapter, the thesis analyzes the effects mechanism posed on competitiveness of trade-related industries by the environmental factors of all levels: which is to demonstrate the incentive mechanism of environmental standards, and the cost and product differentiating effects caused by internalization of environmental costs, and to demonstrate the booming of environment protection industry and the technical innovation, and also to demonstrate the obligating effects of different environmental standards, regional regulations and international treaties. Besides, it modifies the competitiveness model of trade related industries. Chapter 5 is a conclusion of the thesis.The main innovative ideas are: one is the empirical research concerning positive effects of environment upon Chinese export sum on a macroeconomic level, another is bringing environmental factors to Diamond Model, and illustrating effects mechanism upon competitiveness of trade-related industries to obtain a new pattern to analyze industrial competitiveness.