Export trade and Environmental Pollution: An Analysis from a Spatial Perspective

Abstract

Based on the panel data of 31 provincial units in China from 2001 to 2015, the paper employs the spatial econometric model to examine the relationship between China’s export trade and industrial SO2 emissions. Research results conclude that export trade is negatively correlated with industrial SO2 emissions when considering spatial effect. Participation in international trade is beneficial to China’s pollution abatement. The results do not support the pollution havens hypothesis. China needs to be actively involved in the global economy as the world economy becomes increasingly interconnected.