Dynamic Impacts Of Environmental Regulation On The Industrial Upgrading In Western China

Since the implementation of the western development strategy,the economy of western China has got rapid development,but the development is accompanied by the deterioration of environmental problems,ecological environment destruction,and even endanger the survival and development of human beings.A series of environmental and ecological events,so that the government realize the importance of environmental protection,and actively take a series of policy measures for environmental regulation.At present,our country’s first priority is development.The implementation of environmental regulation is bound to affect the industrial upgrading,how to achieve environmental protection and economic development is a win-win situation is the focus of domestic and foreign scholars.In this paper,the panel data from 2000 to 2014 year in the western provinces of China are taken as the research object.The main purpose is to clarify the relationship between environmental regulation and industrial upgrading in western China through empirical analysis.Firstly,we make a specific definition of the concept and classification about environmental regulation and industrial upgrading,and then analyzes the transmission mechanism of environmental regulation and industrial upgrading.It is found that environmental regulation mainly through cost effect,barrier effect,comparative advantage theory and innovation compensation effect to influence industrial development.This paper shows the development of environmental regulation in China and the attitudes and behaviors of the enterprises in the western region should take to deal with environmental regulation.By studying the domestic and foreign related literature can be found about the relationship between environmental regulation and industrial upgrading is usually divided into the following three conditions: environmental regulation has a promoting effect on the industrial upgrading;environmental regulation has a blocking effect on industrial upgrading;the relationship between environmental regulation and industrial upgrading is not clear and will vary depending on the environmental regulatory tool of the region.Based on the research of the domestic and foreign,this paper puts forward three hypotheses: Hypothesis 1.There is a positive correlation between environmental regulation and industrial upgrading in western region.Hypothesis 2.There is a negative correlation between environmental regulation and industrial upgrading in western region.Hypothesis 3.The relationship between environmental regulation and industrial upgrading in western region is not clear.According to the static panel regression,dynamic panel regression and robustness test results of the third chapter,we can draw the following conclusions : There is a negative correlation between environmental regulation and industrial upgrading in the western region,that is,environmental regulation is not conducive to industrial upgrading in the westernregion.Belong to Hypothesis 2.The model is reasonable and robust,and the regression direction does not change with the change of the dependent variable or the independent variable.Industrial upgrading has a strong inertia,the last phase of industrial upgrading has a significant positive impact on the current industrial upgrading.Therefore,we should use the environmental regulation tools according to the actual situation of the western region,and actively guide the enterprises to adopt a positive attitude to deal with environmental regulation,so as to promote the effect of environmental regulations on industrial upgrading.