Share:


Environmental regulation, industrial agglomeration, and sustainable development in the Chinese textile industry

    Xiaoying Ju Affiliation
    ; Zhida Ma Affiliation
    ; Fei Chen Affiliation
    ; Peng Yao Affiliation
    ; Jianxu Liu Affiliation
    ; Songsak Sriboonchitta Affiliation

Abstract

Is it possible for the imposition of environmental regulation to develop the textile industry? Is it possible to balance quality and efficiency with energy conservation and emission reduction and achieve the sustainable development of the textile industry? The main objective of this study is to analyze the effects of the environmental regulation on industrial agglomeration and industrial efficiency within the textile sector. The findings reveal that, first, environmental regulation has significantly facilitated the agglomeration of the textile industry to regions with less stringent environmental standards. The restructuring and optimization of domestic value chains have also been promoted. Second, environmental policies in the process of the promotion of the industrial agglomeration are accompanied by a significant improvement in industrial efficiency. This improvement has contributed to the achievement of sustainability goals in the textile domain. Third, the influence of environmental regulations on industrial agglomeration and industrial efficiency improvement of the textile industry is strongly heterogeneous in terms of ownership. This impact is more significant in state-owned industries and private industries. This study holds substantial theoretical significance and practical relevance in promoting environmentally friendly and sustainable progress in the Chinese textile industry.


First published online 12 October 2023

Keyword : environmental regulation, industrial agglomeration, industrial efficiency, sustainable development

How to Cite
Ju, X., Ma, Z., Chen, F., Yao, P., Liu, J., & Sriboonchitta, S. (2023). Environmental regulation, industrial agglomeration, and sustainable development in the Chinese textile industry. Technological and Economic Development of Economy, 29(6), 1633–1656. https://doi.org/10.3846/tede.2023.20010
Published in Issue
Dec 7, 2023
Abstract Views
481
PDF Downloads
284
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Antràs, P., Chor, D., Fally, T., & Hillberry, T. (2012). Measuring the upstreamness of production and trade flows. American Economic Review, 102(3), 412–416. https://doi.org/10.1257/aer.102.3.412

Beverelli, C., Koopman, R., & Kummritz, V. (2019). Domestic value chains as stepping stones to global value chain integration. The World Economy, 42(5), 1467–1494. https://doi.org/10.1111/twec.12779

Cai, B., Guo, H., Cao, L., Guan, D., & Bai, H. (2018). Local strategies for China’s carbon mitigation: An investigation of Chinese city-level CO2 emissions. Journal of Cleaner Production, 178, 890–902. https://doi.org/10.1016/j.jclepro.2018.01.054

Cai, X., Lu, Y., Wu, M., & Yu, L. (2016). Does environmental regulation drive away inbound foreign direct investment? Evidence from a quasi-natural experiment in China. Journal of Development Economics, 123, 73–85. https://doi.org/10.1016/j.jdeveco.2016.08.003

Campello, M., & Larrain, M. (2016). Enlarging the contracting space: Collateral menus, access to credit, and economic activity. Review of Financial Studies, 29(2), 349–383. https://doi.org/10.1093/rfs/hhv069

Chao, X., Liu, L., & Sun, Y. (2021). Measurement of high quality development and development path of China’s equipment manufacturing industry. Journal of Statistics and Information Forum, 36(6), 94–103. https://doi.org/10.3969/j.issn.1007-3116.2021.06.010

Chen, J. (2002). The regional transfer of industries in China at the current stage and its driving mechanism. China Industrial Economics, (8), 37–44. https://doi.org/10.19581/j.cnki.ciejournal.2002.08.005

Combes, P.-P., Duranton, G., Gobillon, L., Puga, D., & Roux, S. (2012). Productivity advantages of large cities: Distinguishing agglomeration from firm selection. Econometrica, 80(6), 2543–2594. https://doi.org/10.3982/ECTA8442

Copeland, B. R., & Taylor, M. S. (2004). Trade, growth, and the environment. Journal of Economic Literature, 42(1), 7–71. https://doi.org/10.1007/978-1-4615-0271-5_7

Duranton, G., & Puga, D. (2004). Micro-foundations of urban agglomeration conomies. In J. V. Henderson & J. F. Thisse (Eds.), Handbook of regional and urban economics, North Holland (vol. 4, pp. 2063–2117). Elsevier. https://doi.org/10.1016/S1574-0080(04)80005-1

Fenge, R., von Ehrlich, M., & Wrede, M. (2009). Public input competition and agglomeration. Regional Science and Urban Economics, 39(5), 621–631. https://doi.org/10.1016/j.regsciurbeco.2009.04.003

Fu, J., & Li, L. (2010). Empirical study of environmental regulation, factor endowment and international competitiveness of industries: Based on panel data of Chinese manufacturing industry. Management World, (10), 87–98, 187. https://doi.org/10.19744/j.cnki.11-1235/f.2010.10.008

Gale, A. B., & John, D. M. (1999). The impact of environmental constraints on productivity improvement in integrated paper plants. Journal of Environmental Economics and Management, 38(2), 121–142. https://doi.org/10.1006/jeem.1999.1082

Gao, X., & He, H. (2021). Cleaner production, green transformation and product quality upgrade of enterprises. Statistical Research, 38(7), 64–75. https://doi.org/10.19343/j.cnki.11-1302/c.2021.07.005

Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. The Quarterly Journal of Economics, 110(2), 353–377. https://doi.org/10.1201/b17299-9

Grossman, G. M., & Rossi-Hansberg, E. (2010). External economics and international trade redux. Quarterly Journal of Economics, 125(2), 829–858. https://doi.org/10.1162/qjec.2010.125.2.829

Han, C., & Hu, H. (2015). How the cleaner production standards regulation affects total factor productivity dynamically: A quasi-natural experiment analysis excluding other policy interferences. Journal of Statistics and Information Forum, (5), 70–82. https://doi.org/10.19581/j.cnki.ciejournal.2015.05.007

Han, G. (2018). Environmental regulation, technological innovation and capacity utilization: How hard environmental constraints can effectively manage overcapacity. Modern Economic Science, 40(1), 84–93, 127.

Heberer, T., & Senz, A. (2011). Streamlining local behavior through communication, incentives and control: A case study of local environmental policies in China. Journal of Current Chinese Affairs, 40(3), 77–112. https://doi.org/10.1177/186810261104000304

He, S., Liu, Y., & Duan, C. (2019). Do the demonstration zones for the transfer of industries lead to higher total factor productivity? Journal of Finance and Economics, (3), 127–140. https://doi.org/10.16538/j.cnki.jfe.2019.03.010

He, S., Liu, Y., & Xiang, G. (2013). Potential scale and structure of coastal industrial transfers under multiple impacts: A simulation analysis based on a regional CGE model. China Soft Science, (10), 134–146. https://doi.org/10.3969/j.issn.1002-9753.2013.10.013

Hu, F. (2016). Environmental effects of the division of labour in global value chains in manufacturing and China’s response. Inquiry Into Economic Issues, (3), 151–155.

Huang, J., & Qi, Y. (2022). Can environmental taxes force industrial structure optimization and upgrading? A quasi-natural experiment based on environmental “Fee to Tax”. Industrial Economics Research, (2), 1–13. https://doi.org/10.13269/j.cnki.ier.2022.02.001

Jin, X., & Song, J. (2020). Environmental regulation, technological distance and R&D options for heterogeneous enterprises. Southern Economy, (6), 70–86.

Li, F. (2020). Regional role of Chinese provinces under dual value chain embedding: An integrated theoretical analysis framework. China Industrial Economics, (1), 136–154. https://doi.org/10.19581/j.cnki.ciejournal.2020.01.009

Li, P., Wang, Q., He, J., & Wu, B. (2010). Construction of a sustainable development indicator system and target projections for China’s manufacturing industry. China Industrial Economics, (5), 5–15. https://doi.org/10.19581/j.cnki.ciejournal.2010.05.002

Lin, W. T., & Chiang, C. (2011). The impacts of country characteristics upon the value of information technology as measured by productive efficiency. International Journal of Production Economics, 132(1), 13–33. https://doi.org/10.1016/j.ijpe.2011.02.013

Liu, H., Liu, W., & Liu, Z. (2011). Study of quantitative measurement of inter-regional industrial transfer: Analysis based on inter-regional input-output tables. China Industrial Economics, (6), 79–88. https://doi.org/10.19581/j.cnki.ciejournal.2011.06.008

Liu, S., Yang, D., & Jin, D. (2021). Impact of environmental regulation on capacity utilization: An analysis based on the mediating moderating effect of technological innovation. Reform, (8), 77–89.

Liu, Z., Li, W., & Chen, J. (2009). Study of China’s competitive advantage in textile exports in the quota-free era: An empirical analysis based on market structure and competitiveness. Nankai Economic Studies, (2), 116–129. https://doi.org/10.3969/j.issn.1001-4691.2009.02.009

Liu, X., Ye, K., & Lu, Z. (2019). Accelerated depreciation policy and firm investment: Evidence from a quasi-natural experiment in China. China Economic Quarterly, 18(1), 213–234. https://doi.org/10.13821/j.cnki.ceq.2018.02.10

Navas-Aleman, L. (2011). The impact of operating in multiple value chains for upgrading: The case of the Brazilian furniture and footwear industries. World Development, 39(8), 1386–1397. https://doi.org/10.1016/j.worlddev.2010.12.016

Niu, H., & Jiang, K. (2011). Empirical study on the distribution pattern and influencing factors of textile industry agglomeration: Based on spatial panel data models. Journal of Applied Statistics and Management, 30(4), 571–584. https://doi.org/10.13860/j.cnki.sltj.2011.04.013

Odei, S. A., & Stejskal, J. (2020). Firms pursuit of innovations through internationalization: A treatment effect estimation. Technological and Economic Development of Economy, 26(4), 837–866. https://doi.org/10.3846/tede.2020.12484

Porter, M. E. (1998). Clusters and new economics of competition. Havard Business Review, 11.

Rao, P., Wang, D., & Li, X. (2019). Acceess to high-speed railway and the decision of supplier distribution. China Industrial Economics, (10), 137–154.

Sanna-Randaccio, F., & Sestini, R. (2012). The impact of unilateral climate policy with endogenous plant location and market size asymmetry. Review of International Economics, 20(3), 580–599. https://doi.org/10.1111/j.1467-9396.2012.01040.x

Sheng, C. (2021). Ideas and strategies for promoting the safe and stable development of industrial supply chains under the new development pattern. Reform, (2), 1–13.

Song, D., & Zhao, F. (2019). Analysis of the industrial transfer effect of environmental regulation: A perspective based on resource endowment transformation. Collected Essays on Finance and Economics, (3), 104–112. https://doi.org/10.13762/j.cnki.cjlc.20181022.001

Song, Y., Zhang, X., & Zhang, M. (2021). The influence of environmental regulation on industrial structure upgrading: Based on the strategic interaction behavior of environmental regulation among local governments. Technological Forecasting and Social Change, 170, 120930. https://doi.org/10.1016/j.techfore.2021.120930

Sun, Z., & Qu, W. (2019). Direct and indirect effects of environmental regulation on energy consumption. Modern Finance & Economics (Journal of Tianjin University of Finance and Economics), 39(03), 41–51. https://doi.org/10.19559/j.cnki.12-1387.2019.03.004

Su, H., & Wei, H. (2013). Density effect, urban optimum density and intensive urbanization. China Industrial Economics, (10), 5–17. https://doi.org/10.19581/j.cnki.ciejournal.2013.10.001

Tian, X., & He, A. (2021). Conflicts of interest and solution in the impact of environmental regulation on economic growth. Inquiry Into Economic Issues, (03), 111–119.

Tao, F., Zhao, J., & Zhou, H. (2021). Does environmental regulation improve the quantity and quality of green innovation – Evidence from the target responsibility system of environmental protection. China Industrial Economics, (2),136–154. https://doi.org/10.3969/j.issn.1006-480X.2021.02.008

Vig, V. (2013). Access to collateral and corporate debt structure: Evidence from a natural experiment. Journal of Finance, 68, 881–928. https://doi.org/10.1111/jofi.12020

Wang, H., Tang, T., & Song, X. (2017). Who drives enterprise environmental governance: Official’s tenure evaluation or “Five-Year Plan” target assessment ? Finance & Trade Economics, 38(11), 147–161. https://doi.org/10.3969/j.issn.1002-8102.2017.11.010

Wang, K., Ru, X., Ding, L., & Cheng, Y. (2023). Environmental regulation, industrial agglomeration, and marine green development efficiency: An empirical analysis from China’s coastal provinces. Environmental Science and Pollution Research, 30, 82851–82865. https://doi.org/10.1007/s11356-023-28167-8

Wang, S., & Xu, Y. (2015). Environmental regulation and haze decoupling effects: A perspective based on business investment preferences. China Industrial Economics, (4), 18–30. https://doi.org/10.19581/j.cnki.ciejournal.2015.04.003

Wang, Y., & Zhong, A. (2016). Local government competition, environmental regulation and the transfer of energy-intensive industries: A joint test of the Race-to-the-bottom Competition and Pollution Sanctuary hypotheses. Journal of Shanxi University of Finance and Economics, 38(8), 46–54. https://doi.org/10.12735/jfe.v4n2p46

Wen, J., Deng, P., Zhang, Q., & Chang, C. (2021). Is higher government efficiency bringing about higher innovation? Technological and Economic Development of Economy, 27(3), 626–655. https://doi.org/10.3846/tede.2021.14269

Wen, Y., & Zhang, B. (2019). Study of technology linkages and industrial transfers in mega-city clusters: An analysis of evidence from Beijing, Tianjin and Hebei. Commercial Research, (9), 62–72. https://doi.org/10.13902/j.cnki.syyj.2019.09.007

Yang, H., Luo, D., & Chen, S. (2010). Resource endowment, official communication, and economic growth. Management World, (5), 17–26. https://doi.org/10.19744/j.cnki.11-1235/f.2010.05.002

Yu, J. (2015). Adjustment effects of environmental regulations on the technical complexity of industry exports. China Population Resources and Environment, 25(8), 125–134. https://doi.org/10.3969/j.issn.1002-2104.2015.08.016

Yu, Y., Sun, P., & Xuan, Y. (2020). Do the environmental target constraints of local governments affect industrial transformation and upgrading? Economic Research Journal, 55(8), 57–72.

Yoo, S., & Heshmati, A. (2019). The effects of environmental regulations on the manufacturing industry’s performance: A comparison of green and non-green sectors in Korea. Energies, 12(12). https://doi.org/10.3390/en12122296

Zhang, B., Chen, X., & Guo, H. (2018). Does central supervision enhance local environmental enforcement? Quasi-experimental evidence from China. Journal of Public Economics, 164, 70–90. https://doi.org/10.1016/j.jpubeco.2018.05.009

Zhang, X., & Huang, X. (2017). Has the transfer of regional manufacturing industries promoted total factor productivity? A study based on data from prefectural cities in China. Journal of Macro- Quality Research, 5(3), 62–75. https://doi.org/10.13948/j.cnki.hgzlyj.2017.09.006

Zhao, X., & Yin, H. (2011). Industrial relocation and energy consumption: Evidence from China. Energy Policy, 39(5), 2944–2956. https://doi.org/10.1016/j.enpol.2011.03.002

Zhao, D., Dou, Y., & Tong, L. (2022). Effect of fiscal decentralization and dual environmental regulation on green poverty reduction: The case of China. Resources Policy, 79. https://doi.org/10.1016/j.resourpol.2022.102990

Zhou, L. (2004). The incentive and cooperation of government officials in the political tournaments: An interpretation of the prolonged local protectionism and duplicative investments in China. Economic Research, (6), 33–40.

Zhou, L. (2007). Governing China’s local officials: An analysis of promotion tournament model. Economic Research, (7), 36–50.