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Wang, Long
- Environmental Regulation, Manufacturing International Competitiveness, and Industry Heterogeneity:Empirical Evidence from China
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1 School of Economics, Wuhan University of Technology, Wuhan 430070, CN
1 School of Economics, Wuhan University of Technology, Wuhan 430070, CN
Source
Nature Environment and Pollution Technology, Vol 17, No 2 (2018), Pagination: 421-432Abstract
In recent years, as the world’s environmental regulations are strengthened, the development of ecological civilization has already become an irresistible trend. In the past, the economy was developed at the expense of the environment, and increasingly stringent environmental standards now exert an immediate effect on environmental protection. However, a consensus in academia about environmental regulation, whether affecting the economic development and international competitiveness of the industry or not, has yet to be reached. This study aims to reveal the relationship between environmental regulation and industrial international competitiveness in the context of the new era and whether the relationship has industry heterogeneity. Using the data of 26 manufacturing industries in China from 2005 to 2015 and the panel data regression model, the effect of environmental regulation on the international competitiveness of the manufacturing industry was analysed. Results show that environmental regulation and manufacturing international competitiveness, display an inverted “U”- shaped relationship. Currently, China lies on the left side of the curve, and moderately strengthening the environmental regulation is beneficial for the improvement of manufacturing industry international competitiveness. The effect of environmental regulation on the international competitiveness of the manufacturing industry is characterized by heterogeneity. Meanwhile, the turning point of the inverted “U” curve can be delayed by strengthening the environmental regulation in high pollution and research and development (R&D) intensity and competitive industries. In addition, foreign direct investment, human capital, and industrial scale have a positive impact on manufacturing industry international competitiveness. Meanwhile, patent quality and capital deepening have inhibitory effects. This study provides a theoretical basis for the government to implement strict environmental regulation policies and new concepts for their implementation.Keywords
Environmental Regulation, Industrial Competitiveness, Industrial Heterogeneity, Panel Data Regression.Full Text
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