Analysis On The Impact Of Environmental Regulations In China On The Terms Of Trade For Pork Products

Since 1970’s,the concept of environment protection and sustainable development has been widely accepted.Environment protection has become the consensus of the world.Countries have introduced a variety of measures to control environmental pollution.On the other hand,with the process of economic globalization,international trade has become one of the most important engines of economic development,which driven by trade liberalization and regional economic integration.In this context,the relationship between environment and trade has become a hot area of researches.But current studies that focus on the relationship between the environmental regulations and the terms of trade are lacking.Therefore,this paper takes the effect of environmental regulations for Chinese pig industry on terms of trade as the object of research,and explores the impact of environmental regulations for Chinese pig industry on terms of trade of pork products from theoretical and empirical aspects.In the aspect of theoretical analysis,from the static and dynamic perspective,this paper ananlyses the mechanism of impact of environmental regulation on net barter terms of trade,income terms of trade as well as single factor terms of trade,according to the environmental regulations for the different departments.This paper calculates the net barter terms of trade and the income terms of trade of Chinese pork products,and finds that the two terms of trade deteriorated.By analyzing the environmental regulation development of pig industry,this paper finds that by the year 2000,the environmental regulations for Chinese pig industry are relatively lax,but after 2000,the environmental regulations are increasingly strict.At present,the environmental regulations system for Chinese pig industry takes command control regulations as main component,economic incentives regulations and voluntary regulations as auxiliary.In the empirical part,this paper takes the number of policies,statutes and standards for environmental protection that are suitable for the pig industry as an indicator of the stringency of environmental regulations,and uses unit root test,cointegration analysis and multiple linear regression method to study the relationship between environmental regulations with the terms of trade of pork products.Results show that environmental regulations has a significant negative correlation with the net barter terms of trade of pork products and a negative correlation with the income terms of trade of pork products,which is not significant.Finally,based on the results of the studies,this paper argues that in order to achieve coordinated development of environment and trade,and improve the sustainable development level of Chinese pig industry,they are important to further improve environmental legislation and policy for Chinese pig industry;increase investment in pig industry for waste comprehensive utilization and actively explore social services of pollution control;promote environmental labeling system and encourage the development of green products.