The Impact Of Environmental Regulation On Enterprise’s Export Products Switching In China

For a long time,China’s economic development relies on the extensive growth mode of high investment,high consumption and high pollution,which makes China pay a heavy resource and environmental cost for its rapid economic growth.Faced the ever-increasing intensity of environmental regulation and the fierce market competition brought by trade globalization,export enterprises have to make product switching to cope with market changes.Theorists have carried out extensive research on environmental regulation and export product switching respectively,but few papers have integrated them into the same jframework for overall research.They have not elaborated on the impact of environmental regulation on enterprises’ exports product switching.In view of this,based on the theory of environmental economics and international trade,this paper elaborates the mechanism of environmental regulation on enterprises’exports product switching in China’s via the cost effect and technology effect.The empirical results show that the intensity of environmental regulation is positively correlated with the total switching rate of export products,the add rate of export products and the drop rate of export products,and the impact of environmental regulation on product switching in firm exports is mainly based on increasing new product types.Based on the overall sample level of enterprises,this paper finds that enterprise cost rate,enterprise labor productivity and government subsidies are beneficial to promoting the export products switching,while enterprises direct investment and enterprise scale are not conducive to export products switching,while technological research and development of enterprises do not have a significant impact on export products switching.After introducing the interactive item,environmental regulation will improve the export product switching of enterprises with higher cost.However,environmental regulation has no effect on the export product switching of enterprises with high-tech R&D.At the same time,based on the heterogeneity of enterprises,this paper also finds that the impact of environmental regulation on export product switching of general trade enterprises is greater than processing trade enterprises;the impact on export product switching of private enterprises and foreign-funded enterprises is greater than state-owned enterprises;and the impact on export product switching of direct export enterprises is greater than trade intermediaries.In the end,this paper tests the effect of the "two control zones"policy,and finds that the environmental regulation of the"two control zones" can significantly improve the switching rate of export products,the adding rate of export products and the dropping rate of export products.This paper opens up the operating mechanism behind the"black box"of environmental regulation and internal product level of enterprises,explores the impact of environmental regulation on product switching in firm exports in China,and coordinates the sustainable development of environmental regulation and export trade of enterprises.