Environmental Constraints and Industrial Distribution Empirically in China: A Panel Data Set of Provincial-level

By employing a panel data set of provincial environment pollution emission and the growth of China's industrial productivity for the years 2000-2007 periods, we seek to shed light on this topic by the linkage of the growth of China's industrial productivity and environmental pollution. For this purpose we calculate in a first step the growth index of industrial productivity (TFP) via DEA-Malmquist. In a second step we regress the derived values against the SO2 emissions as the proxy of environmental pollution. The findings are:(1)Industrial TFP growth increased slightly over the sample periods in China, depending on the technical change.(2)Environmental Pollution has a negative effect on the TFP growth in eastern and middle region, supporting the "Porter Hypothesis", and the maximum effect between the environment and industrial TFP in eastern regions, and that of the middle regions follows.(3)Environmental pollution has a positive effect on the industrial TFP growth in western regions during the sample periods. (C) 2011 Published by American Applied Sciences Research Institute