The Impact of Environmental Regulations on Export of the Chinese Manufacturing Industry

Bc. Chenyue Liu, BSc

Master's thesis

Abstract:

Environmental regulation is an effective tool to control environmental problems caused by foreign trade. Increasingly stringent environmental regulations may increase costs and thereby hinder trade growth. However, appropriate environmental regulation also can motivate technological innovation. According to the Porter hypothesis, the innovation compensation effect will even offset the enterprise loss caused by increased production costs, thus promoting export. At present, green transformation and green exports are the main strategies for China's manufacturing industry to achieve a win-win situation for environmental protection and export expansion. As such, it is significant to research the impact of environmental regulations on manufacturing export. This study provides an empirical analysis based on the HOV model adopting balanced panel data of 16 sectors from China’s manufacturing during 2005-2015. Moreover, material capital, human capital, technology input and FDI are simultaneously selected as independent variables to explore the impact of corresponding changes in these variables on export. The main results indicate that China’s environmental regulations intensity play different roles in the manufacturing sectors with different pollution levels. Stricter environmental regulation improves the export of lightly polluted manufacturing sectors but hinders exports in intensive polluted sectors. There is no statistically significant evidence that environmental regulations play a role in moderate pollution manufacturing sectors’ export. Meanwhile, other endowment factors also play various roles in the moderate and lightly pollution manufacturing sectors.

Keywords

Environmental regulation, China, manufacturing export, H-O-V model

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 31. 3. 2021

Obhajoba závěrečné práce

• Vedúci: Ing. Lenka Rumánková, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / odbor:
Economics and Management / Economics and Management