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Impact on Asian firms of product-related environmental regulations through global supply chains : a study of firms in Malaysia

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  • Michida, Etsuyo
  • Ueki, Yasushi
  • Nabeshima, Kaoru

Abstract

This paper sheds light on the important role played by global supply chains in the adaptation to product-related environmental regulations imposed by importing countries, with a focus on chemicals management. By utilizing a unique data collected in Penang, Malaysia, we depict the supply chain structures and how differences among firms in participation to global supply chain link to differences in chemical management. We found that firms belonging to a supply chain are in a better position to comply with these regulations because information and requirements are transmitted through global supply chains. In contrast, those firms that are neither exporters nor a part of a global supply chain lack the knowledge and information channels relevant to chemical management in a product.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/1313/1/ARRIDE_Discussion_No.453_michida.pdf
File Function: First version, 2014
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Bibliographic Info

Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 453.

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Date of creation: Mar 2014
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Publication status: Published in IDE Discussion Paper. No. 453. 2014.3
Handle: RePEc:jet:dpaper:dpaper453

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Related research

Keywords: Malaysia; Environmental protection; International trade; Industrial standards; Foreign investments; Global supply chain; FDI; PRERs (product-related environmental regulations); REACH; RoHS;

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  1. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, Econometric Society, vol. 71(6), pages 1695-1725, November.
  2. Chen, Natalie & Novy, Dennis, 2012. "On the measurement of trade costs: direct vs. indirect approaches to quantifying standards and technical regulations," World Trade Review, Cambridge University Press, Cambridge University Press, vol. 11(03), pages 401-414, July.
  3. Li, Yuan & Beghin, John C., 2010. "A Meta-Analysis of Estimates of the Impact of Technical Barriers to Trade," Staff General Research Papers 31968, Iowa State University, Department of Economics.
  4. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
  5. Tong, Xin & Shi, Jin & Zhou, Yu, 2012. "Greening of supply chain in developing countries: Diffusion of lead (Pb)-free soldering in ICT manufacturers in China," Ecological Economics, Elsevier, vol. 83(C), pages 174-182.
  6. Chen, Sau Soon & Mohd Helme bin Mohd Helan & Zanariah Ujang & Michida, Etsuyo & Nabeshima, Kaoru, 2014. "Role of laboratories for adapting product-related environmental regulations (PRERs)," IDE Discussion Papers, Institute of Developing Economies, Japan External Trade Organization(JETRO) 452, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  7. Ramungul, Nudjarin & Michida, Etsuyo & Nabeshima, Kaoru, 2013. "Impact of product-related environmental regulations / voluntary requirements on Thai firms," IDE Discussion Papers, Institute of Developing Economies, Japan External Trade Organization(JETRO) 383, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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