Finance & Trade Economics, 2022, Issue 6

Authors: LV Yue, CHEN Yongchang

Abstract: Promoting opening-up and green development is a new development concept to promote Chin’s high quality economic development and foster new advantage in international competition during the Fourteenth Five-Year Plan period(2021-2025). This paper integrates the micro enterprise data in the 1998-2013 from Chinese Industrial Enterprise Database and Pollution Emissions Database of Chinese Industrial Enterprises, and then merges them with the upstream services opening-up indicators in the Catalogue for the Guidance of Industries for Foreign Investment to empirically analyze the environmental effects of services opening-up on corporate pollution. The findings indicate that: (1) the opening-up of service industry will significantly reduce corporate air pollution. This result is still significant under several robustness tests and endogenous treatment; (2) reducing energy dependence and upgrading technology are important channels for the opening-up of the service market to reduce corporate pollution; (3) in addition, enterprises with higher average energy consumption, in high-tech industries or with a high degree of dependence on services can exert more prominent emission reduction effects after the opening-up of the service industry. The research conclusions reveal the environmental effects of opening wider the service industry, and provide useful empirical evidence and policy inspiration for further promoting the coupling and compatibility of opening-up and green development concepts.

Keywords: Opening-up of Service Industry,Manufacturing Firms, Environmental Pollution