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THE EFFECTS OF ENVIRONMENTAL REGULATION ON EXPORTERS’ EXITING BEHAVIOR: THE EVIDENCE FROM CHINA

Dongmei Tu (), Yao Li and Yong Zeng ()
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Dongmei Tu: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, Sichuan 611731, P. R. China
Yao Li: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, Sichuan 611731, P. R. China†East Asian Institute, National University of Singapore, Singapore
Yong Zeng: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, Sichuan 611731, P. R. China

The Singapore Economic Review (SER), 2019, vol. 64, issue 02, 301-321

Abstract: This study investigates the impact of stricter environmental regulation on export exit behavior of Chinese manufacturing firms from 1998 to 2009. After controlling heterogeneous firm, we find that (i) on average, the stricter regulation has not significantly caused more export exit; (ii) under stricter policy, foreign invested pure (or pollution intensive) exporters are not more likely to exit export than domestic pure (or pollution intensive) exporters; (iii) only weak evidence supports the pollution haven hypothesis for domestic pure exporters. All our robustness checks such as difference in difference analysis, different regulation measurement, and matched firm analysis show similar results.

Keywords: Environmental regulation; export exiting behavior; TCZ (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1142/S0217590817470014

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