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International Competitiveness and Environmental Regulations

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  • Babool, Md. Ashfaqul Islam
  • Reed, Michael R.
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    Abstract

    This study follows the standard factor endowment approach to explain the effects of environmental regulations on net exports in different product-based industries. It constructs an econometric model which includes factor endowments and environmental regulations to examine how strict environmental policy impact export competitiveness. Cross-sectional and time series (panel) data for 6 countries and 17 years were used in this model. In this study, capital services increase net exports in labor-intensive industries like textiles, textile products, leather and footwear industries. The effects of increased labor intensity in food, textiles and machinery is higher than for other capital intensive good industries. The environmental regulation imposed in textile, textiles products, leather and footwear industry, and manufacturing (n.e.c) industry negatively impact net exports.

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    File URL: http://purl.umn.edu/19496
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19496.

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    Date of creation: 2005
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    Handle: RePEc:ags:aaea05:19496

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    Keywords: Environmental Economics and Policy;

    References

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    1. Mark N. Harris & László Kónya & László Mátyás, 2000. "Modelling the Impact of Environmental Regulations on Bilateral Trade Flows: OECD 1990-96," Melbourne Institute Working Paper Series wp2000n11, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. Stern, Robert M. & Maskus, Keith E., 1981. "Determinants of the structure of U.S. foreign trade, 1958-1976," Journal of International Economics, Elsevier, vol. 11(2), pages 207-224, May.
    3. Busse, Matthias, 2004. "Trade, environmental regulations and the World Trade Organization : new empirical evidence," Policy Research Working Paper Series 3361, The World Bank.
    4. Mulatu Abay & Florax Raymond J.G.M. & Withagen Cees, 2003. "Environmental Regulation and International Trade: Empirical Results for Germany, the Netherlands and the US, 1977-1992," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-30, December.
    5. McGuire, Martin C., 1982. "Regulation, factor rewards, and international trade," Journal of Public Economics, Elsevier, vol. 17(3), pages 335-354, April.
    6. Abay Mulatu & Raymond J.G.M. Florax & Cees A. Withagen, 2004. "Environmental Regulation and International Trade," Tinbergen Institute Discussion Papers 04-020/3, Tinbergen Institute.
    7. Jenkins, Rhys, 1998. "Environmental Regulation and International Competitiveness: A Review of Literature and Some European Evidence," UNU-INTECH Discussion Paper Series 01, United Nations University - INTECH.
    8. Metcalfe, Mark R., 2001. "Environmental Regulation And Implications For Competitiveness In International Pork Trade," International Trade in Livestock Products Symposium, January 18-19, 2001, Auckland, New Zealand 14565, International Agricultural Trade Research Consortium.
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