International Trade and Environmental Policy: How Effective is 'Eco-Dumping'?
AbstractThe effects of environmental regulations on the international competitiveness of domestic industries have become an increasing concern in the trade liberalisation process in the 1990s. This paper examines the significance of environmental policy for trade. A generalised GNP function, which incorporates both technology changes and increasing returns to scale is set up and a flexible translog function form is used to approximate this generalised GNP function. Seemingly unrelated regression is employed to estimate a system of sectoral share equations derived from the generalised GNP function. The basic hypothesis is that while the environmental factor is not a significant determinant of the international competitiveness of environmentally sensitive industries, technology is. The result supports this hypothesis and suggests that socalled eco-dumping is not an effective strategy in this context.
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Bibliographic InfoPaper provided by Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University in its series Asia Pacific Economic Papers with number 287.
Length: 25 pages
Date of creation: Jan 1999
Date of revision:
Other versions of this item:
- Xu, Xinpeng, 2000. "International trade and environmental policy: how effective is 'eco-dumping'?," Economic Modelling, Elsevier, vol. 17(1), pages 71-90, January.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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