The Impact of Environmental Target Constraints on the Quality of Export Products

ABSTRACT China faces the dual challenges of maintaining trade vitality and environmental protection. This paper collects data on environmental target constraints (ETC) in Chinese cities and evaluates the impact of local government ETC on the quality of enterprises' export products. The results show that ETC can significantly improve the quality of export products. This effect is stronger in enterprises with lower export product quality, enterprises in the eastern region and private enterprises. ETC can improve the products quality by encouraging enterprises to carry out innovation, optimizing resource allocation and improving financing constraints. This paper has valuable theoretical and practical implications for deepening China's official evaluation system and promoting the balance between trade and environment.