The Relationship Between Zhejiang Province Environmental Regulation and International Trade: An Empirical Research

摘要

This paper calculated the environmental regulation degree of Zhejiang province from 1996 to 2006. And then applied Granger causality test inspected the causal relationship between environmental regulation and international trade volume. The conclusion is: although there is a long-term co-integration relationship between environmental regulation and international trade volume, there is no Granger causal relationship, that is to say, the increase of international trade is the Granger cause of environmental regulation degree upgrade, but the upgrade of environmental regulation degree is not the Granger cause of international trade volume fluctuation. At last, put forward some reasons to explain the conclusions and some revelations.