Import competition and the improvement in pollutant discharge from heterogeneous enterprises: Evidence from China

Abstract

With the deepening of trade liberalization, import competition has become increasingly fierce in China. In addition, the Chinese government has been setting higher requirements for environmental quality. Corporate pollutant emission behavior is a subject of broad concern. This paper uses panel data from 2000 to 2007 to study the impact of import competition on the pollution emission intensity of heterogeneous manufacturing enterprises. The main results are as follows. (1) Import competition can inhibit the SO₂ emission intensity of high-productivity manufacturing enterprises. The conclusion remains robust after a series of robustness tests. (2) Heterogeneity analysis shows that import competition significantly impacts corporate pollution emission behavior in eastern regions and frontier industries. (3) The reallocation effect and the technology effect are the main channels through which import competition improves the pollution emissions of high-productivity manufacturing enterprises. This paper provides a more comprehensive perspective for studying the impact of import competition and proposes a new direction for enterprise pollution control.

Keywords: China; Heterogeneous enterprises; Import competition; Pollutant discharge.