Abstract:During the period of urbanization,firms will move from the center of city to outside,then few studies have discussed the moving decision of firms through the mechanism.In this paper we focus on how environmental regulation has an effect on the migration of firm.We find that wastewater pollution fees have a significantly negative effects on inter-city migrations of firms in provincial level,while waste gas pollution fees have a positive effect on inter-city migrations of firms.And environmental regulations have increased the migrations among counties in firm level.We further find that waste gas pollution fees have a positive effect on moving to poor counties of firms,and the effect is more announced after joining the WTO and the reform of the collection of pollution fees.Finally we find that firm will engage more inputs of creation to avoid the increasing cost of environmental regulation,then they will not migrate.