The social welfare effects of exports: Environmental and health impacts in China

Export trade has significantly benefited China's economic growth since it joined the World Trade Organization (WTO). However, the literature predominantly emphasizes the economic benefits of trade, with comparatively less attention devoted to its broader social welfare implications. Amidst global health crises, trade stagnation, and diminishing demographic dividends, this paper examines the health consequences of trade, especially the impact of export trade on the health of Chinese residents. Utilizing microlevel data from the China Family Panel Studies (CFPS), integrated with regional macro-data, this paper finds that (1) the growth of export trade can significantly improve the overall health of regional residents, including both subjective and objective health. (2) An analysis of the mechanisms reveals that export trade can improve the health of residents by providing employment opportunities and increasing income levels. Contrary to expectations derived from the pollution haven hypothesis, this study finds that regional export activities are associated with improved local environmental quality through reduced pollutant emissions, which, in turn, improves the health of residents. (3) An exploration of heterogeneity suggests that exports have a greater impact on the health of rural residents, women, and the middle-aged and elderly. This paper contributes to the literature on health economics and trade liberalization, and provides insights that are relevant to the formulation of trade policy, public health, and health service policy in China.