An empirical analysis on the impact of environmental regulations on pork trade:evidence from China

This paper uses the gravity model to examine the effect of environmental regulations on pork trade flows between different regions within China.We apply a linear programming tool to estimate pork trade flows from 2000 to 2008,and discuss the environmental acts on livestock pollution and income level to proxy environmental regulations.We use OLS regression and panel data with dummy variable in the cross-sectional GLS estimation.Our results indicate that the gap of environmental regulations between trade partners has a positive relationship with pork trade flows,and the difference in environmental regulations changes the traditional comparative advantage pattern to some extent.This paper provides convincing evidence for the pollution haven effect on livestock in China.