Empirical Analysis On The Impact Of Trade Liberalization On Environmental Pollution Of The Bohai Sea Region

Since coming into the 21st century, the center of economic development appeared the trend from south to north, following Pearl River Delta and Chang River Delta, Circum-Bohai-Sea region has becoming another economic growth pole in our country, foreign trade and issue foreign funds present obviously rising trend, at the same time in the healthy development, it undertakes the duty of bringing along development of comparatively lagging provinces around. Being as one of the engine of promoting economic development, trade has an enormous contribution to economy in Circum-Bohai-Sea region, but following unceasing improvement level of its opening in Circum-Bohai-Sea region, the conflict of trade and environment becomes increasingly acute. Based on the conflict and theory analysis, we adopt the panel data from 1989 to 2008 of three provinces and two cities in Circum-Bohai-Sea region and empirically analyzed the impact of trade liberalization to environment pollution in this area.This paper shortly stated the theory values and realistic meaning firstly, reviewed and summarized correlative literatures afterward,then deeply explored theory basis of empirical parts as the cause of environment pollution,the EKC curve hypothesis theory,the environmental effect of trade liberalization,the path of trade liberalization influence environment quality and so on. Actuality parts connecting words,illustrations,tables systematically and visually analyzed foreign trade and the virtual of ocean pollution, according to territorial specialty, especially added the analysis to ocean pollution in Circum-Bohai-Sea region. Empirical parts test the applicability of EKC curve hypothesis in Circum-Bohai-Sea region, then add exports and imports funds, make use of some independent variables just as foreign funds to check the influence of imports and exports to environment pollution, besides make use of CGE model which amended by characteristic of the region to analyze environmental effect of trade liberalization to the environment pollution in the region. According to analysis we find, the economic development and environment in this region wholly tally with EKC hypothesis, foreign trade and FDI worsen the regional environment in a certain extent. Scale effect would prick up environment pollution more, structural effect and technology effect would improve the environment pollution in a certain extent. Therefore, we study experience which deal with the relationship of trade and environment in some newly industrialization and developed countries, combining the actuality in Circum-Bohai-Sea region, we put forward some advise to improve trade and sustainable development of environment. Lastly, we shortly sum up analysis conclusion in this paper and point out existent shortage in analysis process with expectation to analyzed direction for the future.