The Impact of Environmental Regulation on Productivity and Exports: A Firm-Level Evidence from China |
| |
Authors: | Xiaobing Huang Xiaolian Liu |
| |
Institution: | 1. School of Business, Gannan Normal University, Ganzhou, Jiangxi Province, Chinahuangxiaobing1234@126.com;3. School of Tourism and History, Gannan Normal University, Ganzhou, Jiangxi Province, China |
| |
Abstract: | AbstractThis paper investigates the influence of environmental regulation on firm performance, as captured by firm productivity and firm exports. We first construct a Melitz-style model investigating the causal effects of environmental regulation on firm productivity and firm exports, and then test the theoretical predictions using firm-level data over the period 2005–2009. The theoretical and empirical investigation suggests that environmental regulation promotes firm productivity slightly with a lagged effect, has a harmful impact on firm exports, and has a U-shaped relationship with firm exports. China is to the far left of the inflection point, but this U-shaped relationship is not present at firms in clean industries and clean regions. |
| |
Keywords: | China environmental regulation exports firm productivity |
|
|