The influence of trade openness on the level of human capital in China: on the basis of environmental regulation

Abstract

In this paper, it is found that environmental regulation is an important mechanism that trade openness affects the level of human capital. The author established a theoretical framework to analyze the influence of trade openness on the level of human capital and adopted the system GMM to test it, using Chinese provincial data over the period 1995–2015. The empirical results show that environmental regulation has a long-term U-shaped effect on the level of human capital, while the current environmental regulation in China is conducive to improving the level of human capital. Furthermore, the promotion of human capital level can also increase the possibility of improving environmental regulation, which is conducive to the internal formation and positive interaction between human capital and environmental regulation. The research further enriches the theory of sustainable development of environment and economy. It provides theoretical support for China and developing countries with similar economic and technological levels to actively implement more stringent environmental policies in the context of trade openness.