2025/07/14 by Wenlan Xu, Weiwei Xu, Hongjun Xie +1
Economics, Econometrics and Finance · Business, Management and Accounting · #Global trade and economics #Energy, Environment, Economic Growth #International Business and FDI
paper · doi:10.1080/00036846.2025.2532888
This paper examines the nonlinear impact of environmental regulations in export destinations on the export quality of Chinese manufacturing goods using the CEPII-BACI database (2001–2021). This study reveals that environmental regulations in destination countries have an inverted U-shaped effect on the quality of Chinese manufacturing exports through the combined effects of the innovation effects, crowding-out effects, and constraint effects. In addition, the scale of imported intermediate products and foreign direct investments into China have a moderating role on the inverted U-shaped relationship, shifting the inflection point of the curve to the left and flattening it. This study deepens the understanding of the spillover effects of cross-border environmental policies and their effects on export quality.