Environmental protection and the promotion of export domestic value-added rate is a hot issue in economic development. This paper first explores the mechanism of environmental regulation on domestic value-added rate of export, and then empirically tests the impact of environmental regulation on domestic value-added rate of industrial export in China by using panel data of 270 prefecture level cities from 2003 to 2016. In the sample period, the intensity of environmental regulation has a non-linear impact on the export domestic value-added rate. With the increase of environmental regulation intensity, the export domestic value-added rate shows a U-shaped relationship. In the eastern, central and western regions, the impact of environmental regulation on export domestic value-added rate is consistent with the overall results. However, it is not significant in the western region. This study provides enlightenment for the government to formulate and implement appropriate environmental regulation policies according to regional development differences.
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