Research On Influence Of Environmental Regulation On China's Manufacturing Industry Production Efficiency

Manufacturing industry is the basic industry of national economy,its development not only affects the development of all national economic sectors,but also affects people's livelihood and the strength of national defense forces,But in the process of manufacturing industry development,environmental pollution problems become increasingly serious.Along with peoples environmental protection consciousness gradually strengthened,government departments enact a variety of environmental regulation policies and regard environmental regulation as one of country's important regulation.China has put forward that it should combine economic development and ecological construction to realize a win-win situation of ecological benefits and economic benefits which is based on paying special attention to environment comprehensive improvement in recent years.Therefore,this paper attempts to evaluate whether the implementation of environmental regulation policies has achieved a win-win situation of economic benefit and ecological benefit by the way of researching environmental regulation impacts on manufacturing industry production efficiency.First of all,this paper discussed the theoretical basis that environmental regulation played on the efficiency of manufacturing industry,including externality theory and transaction cost theory.Then analyzed themanufacturing industry environmental regulation policies and the influence mechanism that environmental regulation played on the efficiency of manufacturing industry.Secondly,the paper introduced the current situation of manufacturing industry development and environment problems it brings,then on the basis of 2004-2013 panel data,the paper will use DEA method to measure industrial productivity as well as total factor productivity change index to analyze manufacturing industry economic growth thoroughly.Thirdly,the paper will use fixed effects model to research the influence of environmental regulation on manufacturing industrial productivity,Empirical studies indicate that the environmental regulation impacts the efficiency of manufacturing industry significantly.Finally,the paper gives policy suggestions on environmental regulation and industrial economic growth combined with the main conclusions of the paper,Government should continue to implement and strengthen environmental regulation policie,formulating new pollution emission standards to developing circular economy,accelerating the transformation and upgrading of China's manufacturing enterprises,promoting the manufacturing industry change from labor intensive to technology intensive activelyin order to realize the twin goals of environmental protection and economic growth.