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Does environmental regulation of export destinations affect export quality? Evidence from an emerging economy

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  • Wenlan Xu
  • Hongjun Xie
  • Jinxin Ren

Abstract

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.

Suggested Citation

  • Wenlan Xu & Hongjun Xie & Jinxin Ren, 2026. "Does environmental regulation of export destinations affect export quality? Evidence from an emerging economy," Applied Economics, Taylor & Francis Journals, vol. 58(36), pages 7436-7449, August.
    • Handle: RePEc:taf:applec:v:58:y:2026:i:36:p:7436-7449
    DOI: 10.1080/00036846.2025.2532888
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