The Research On Effect Of Environment Regulation To Trade Competitiveness In Different Region Of China

The international trade have grown rapidly since China been a member of WTO,which have contributed a lot to China economy’s high-speed growth rate. While, theenvironment pollution comes with the development of economy, the governmentappeals to construct an environment-friendly society, and have run some new lawsand policy on environment regulation. On the condition that our international trade islosing cost advantage gradually, the rigid environment regulation may impair tradecompetitiveness of export-corporation for additional cost on environment. It seemshard for the government to make choice between environment and tradecompetitiveness in such drastic international competition. So, if rigid environmentregulation will impair trade competitiveness become a worthy task. Both condition oftrade and environment regulation are different in different area of China. So, we willdo our study in the aspect of region, to find out the real effect of environmentregulation to trade competitiveness in different region of China.In order to evaluate the trade competitiveness as scientifically and precisely aspossible, we rebuild a new comprehensive trade competitiveness evaluating system onthe basis of study made by other scholars, which includes three aspects: advantage oftrade competition factor, advantage of trade competition process and advantage oftrade competition profitable capacity. There are9concrete indexes, which are scale oflabor, scale of capital, infrastructure, scale of trade, growth rate of trade, tradedependence, R&D, market occupation rate and export profit rate.Through our empirical study on different regions in China, we get the followingresults: firstly, ER has a “U” curve effect on trade competitiveness, and all provincesnow stand on the right side of the U curve. Secondly, PGDP has a positive effect ontrade competitiveness, especially in the east of China. Lastly, most variables affecttrade competitiveness in different way in different regions.