Study On Competitiveness Of Regional Environmental Protection Industry Based On Factor Endowments

Since the16th National Congress of the Communist Party of China, with the deepening of the coordinated development of regions and the consciousness of the environmental protection, the environmental industry has formed a relatively complete system. It has reached a considerable scale in some areas. Moreover, the overall competitiveness of the environmental industry in our country has been enhanced substantially. The18th National Congress of the CPC, in a further way, has taken the construction of ecological civilization into the range of our country’s fundamental construction requirements. However, with the improvement of development level, the imbalance of environmental industry development among domestic regions has gradually stood out, and then becomes the restraining factor of the sustainable and healthy development of whole competitiveness of our country’s environmental industry. The unbalance of the factor structure among regions is one of the main reasons leading to this problem. Therefore, we start from the angle of factor endowment, comprehensively consider the current factor differences among regions and research the function and current situation of each factor endowment in environmental industry. On this basis, we will discuss the problems existing in the process during which these factors act on the competitiveness of environmental industry, which is necessary to guarantee the overall harmonious development of the environmental industry in China.The main content of this article includes the following several aspects:Define the concept scope of factor endowment. By summarizing the Factor Endowment Theorv and its evolution, and absorbing existing research achievements on the influential factors of the competitiveness of the environmental industry at home and abroad, consider the division of capital goods, technological capital and other special factors under the conditions of knowledge economy, and divide the factors that affect the environmental industry. Then this article defines the concept scope of various natural resources within the scope as well as the social resource endowment such as labor force, technology, capital and foreign trade, so as to make it more targeted in the environmental industry on the basis of conforming to the requirements of the general comparative advantage and competitive advantage.Taking the "intensiveness of technology and capital" of environmental industry as prerequisite of assumption, this article advances the restrictive function of factor endowment towards environmental industry’s competitiveness. On one hand, referring to the research experience of regional economy and traditional industry, this article applies the concept of "resource curse" of natural resources to the competitiveness evaluation of environmental industry, and in a further way. put forward the labor force factor and trading factor that are quasi "curse" from the generality perspective of mechanism of action. On the other hand, under the same assumption, this article put a theoretical discussion on the functional mechanism of the invested technological factors and capital factors from the aspects of the structure, scale, transferring channel and efficiency, etc. Based on the contents above, several theoretical predictions about the influence mechanism of elements are put forward.The multiple linear regression model of the influential factors of the competitiveness of environmental industry is established to conduct empirical analysis on the way and extent how the factor endowments influence the competitiveness of environmental industry. Taking the31provinces of China as the fundamental researching unit, we first carry out a descriptive statistical analysis based on the panel data during the5years from2006-2010, so as to specify the degree of differences of the factor, and then draw the conclusion in terms of influence direction and contribution degree of the factors by the regression analysis of panel data. Then we compare the discrepancy between the empirical results and theoretical prediction, and explore the practical problems reflected by these differences.Finally, as for the problems reflected from the result of empirical analysis, we put forward corresponding countermeasures and suggestions according to the nature of different factors, in to the purpose to provide reference for the follow-up research of the promotion of environmental industry’s competitiveness in our country.This text starts from the angle of factor endowments, takes all areas of the country into account, carries out research on the influential factors of the competitiveness of regional environmental industry and introduces the new concept of negative resource effect. In this way this article fills in the missing gap in both the content and the scope of the research, provides theoretical reference for subsequent research, and at the same time offers a basis for making industrial developing strategies and feasibly improving the competitiveness of the environmental industry. This article is of relatively strong significance both theoretically and practically.