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HOW DOES ENVIRONMENTAL REGULATION AFFECT FIRM’S SHARE OF DOMESTIC VALUE-ADDED IN GROSS EXPORTS IN CHINA?

Liang Ding, Feng Yu, Yingna Wu and Shihao Wen
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Liang Ding: School of International Trade and Economics, Jiangxi University of Finance and Economics, Nanchang, P. R. China
Feng Yu: ��School of Business Administration, Zhongnan University of Economics and Law Wuhan, P. R. China
Yingna Wu: ��School of Business Administration, Zhongnan University of Economics and Law Wuhan, P. R. China
Shihao Wen: ��School of Business Administration, Zhongnan University of Economics and Law Wuhan, P. R. China

The Singapore Economic Review (SER), 2024, vol. 69, issue 06, 2013-2033

Abstract: This study aims at investigating the intensity of environmental regulation on firm’s share of domestic value-added in gross exports in China. An unbalanced firm-level panel data from 2000 to 2014 is adopted to estimate 10 two-way fixed effects models suggested by Hausman test for the entire sample of 648,801 and subsamples of three trade patterns, three types of ownership and three regions. The primary finding of this study is that for the entire sample and subsamples of general trade, mixed trade, non-state-owned and foreign-owned enterprises and enterprises in the eastern region, the intensity of environmental regulation has a “U-shaped†influence on firm’s share of domestic value-added in gross exports in China, meaning that this influence is negative first and then turns to positive after the intensity of environmental regulation reaches a certain level. This conclusion is reasonable and consistent with our expectation.

Keywords: Environmental regulation; export enterprise; processing trade; share of domestic value-added in gross exports; global value chain (search for similar items in EconPapers)
JEL-codes: F13 F18 F64 F68 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1142/S0217590823400015

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