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Trade Opportunities for Climate Smart Goods and Technologies in Asia

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  • Soumyananda Dinda

    (Chandragupt Institute of Management Patna, E-mail: s.dinda@cimp.ac.in, sdinda2000@yahoo.co.in, & sdinda@gmail.com)

Abstract

This study focuses on trade opportunities of climate smart goods and technologies (CSGT) in Asia. Paper mainly highlights the export gaps for climate smart goods and technologies (CSGT) in Asia and identifies the trade opportunities among trade partners in intraregional and interregional. Applying the gravity model we estimate the export gap for the CSGT as the difference between the actual bilateral export flow and the mean value predicted by the model. In other words, ‘export gap’ is the difference between the actual and predicted export value. There is a scope to increase the export of climate smart goods and technologies with trading partners when the actual trade is below the predicted value ( i.e., negative value of the export gap). This gap actually provides the opportunity to raise the trade and attracting investment in CSGT sector and thereby development takes place. This paper also identifies the export gaps in CSGT for each regional member in its trade with partners within the region, EU, and North America (i.e., the US and Canada). This study contributes to the empirical literature in terms of measuring and identifying the potential trade opportunity of CGST in Asia. The paper also suggests that the climate smart export-led growth model is still valid in emerging Asian countries.

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File URL: http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2011-16.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Maastricht School of Management in its series Working Papers with number 2011/16.

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Length: 19 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:msm:wpaper:2011/16

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Keywords: Bilateral trade flow; Climate Smart Goods and Technologies; Export; Gravity model; Export gap; Potential Trade; Asia.;

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  1. Thierry Mayer & Soledad Zignago, 2011. "Notes on CEPII’s distances measures: The GeoDist database," Working Papers 2011-25, CEPII research center.
  2. Peter Egger, . "An Econometric View on the Estimation of Gravity Models and the Calculation of Trade Potentials," WIFO Working Papers 141, WIFO.
  3. I-Hui Cheng & Howard J. Wall, 2004. "Controlling for heterogeneity in gravity models of trade and integration," Working Papers 1999-010, Federal Reserve Bank of St. Louis.
  4. K. Kalirajan, 1999. "Stochastic varying coefficients gravity model: An application in trade analysis," Journal of Applied Statistics, Taylor & Francis Journals, vol. 26(2), pages 185-193.
  5. Peter Drysdale & Xinpeng Xu, 2004. "Taiwan'S Role In The Economic Architecture Of East Asia And The Pacific," Trade Working Papers 22865, East Asian Bureau of Economic Research.
  6. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  7. Baier, Scott L. & Bergstrand, Jeffrey H., 2001. "The growth of world trade: tariffs, transport costs, and income similarity," Journal of International Economics, Elsevier, vol. 53(1), pages 1-27, February.
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Cited by:
  1. Dinda, Soumyananda, 2013. "Inclusive Green Growth and Sustainable Development through Productive Consumption," MPRA Paper 50574, University Library of Munich, Germany, revised 09 Sep 2013.
  2. Dinda, Soumyananda, 2013. "Climate Change Creates Trade Opportunity in India," MPRA Paper 50636, University Library of Munich, Germany, revised 14 Oct 2013.

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