Quantitative Analysis of Foreign Trade and Environmental Efficiency in China

ABSTRACT

This article analyzes the relationships among trade, the economy, and environmental quality in China. First, in the context of these relationships, the Super-SBM model is used to calculate the environmental efficiencies of thirty Chinese provinces and cities to obtain the degrees of regional disparity. Second, China’s provincial panel data from 2003 and 2012 are used to establish an influential factor indicator system of environmental efficiency. A section-weighted fixed effect model then provides insights about influential factors such as spatial heterogeneity. Third, the article establishes a variable coefficient model to identify the relationships among the objects of the study and divides the Chinese regions into four types. The suggestions include enhancing environmental and business regulations to ensure equilibrium between trade, the environment, and local economies.

KEY WORDS:

• foreign trade
• environmental efficiency
• Super-SBM model
• spatial heterogeneity

Funding

We appreciate the support of the Program for Major Projects in Philosophy and Social Science Research run by the Ministry of Education of China (No. 14JZD031), the National Natural Science Foundation of China (Nos. 71171001 and 71471001), and the Program for New Century Excellent Talents in University (No. NCET-12-0595).

Notes

1. URL: http://www.drc.gov.cn/dcyjbg/.

Additional information

Funding

We appreciate the support of the Program for Major Projects in Philosophy and Social Science Research run by the Ministry of Education of China (No. 14JZD031), the National Natural Science Foundation of China (Nos. 71171001 and 71471001), and the Program for New Century Excellent Talents in University (No. NCET-12-0595).