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International trade and environmental policy: how effective is 'eco-dumping'?

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  • Xu, Xinpeng

Abstract

The 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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  • Xu, Xinpeng, 2000. "International trade and environmental policy: how effective is 'eco-dumping'?," Economic Modelling, Elsevier, vol. 17(1), pages 71-90, January.
  • Handle: RePEc:eee:ecmode:v:17:y:2000:i:1:p:71-90
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    Cited by:

    1. Fünfgelt, Joachim & Schulze, Günther G., 2016. "Endogenous environmental policy for small open economies with transboundary pollution," Economic Modelling, Elsevier, vol. 57(C), pages 294-310.
    2. Zhu, Xueqin & van Ierland, Ekko, 2006. "The enlargement of the European Union: Effects on trade and emissions of greenhouse gases," Ecological Economics, Elsevier, vol. 57(1), pages 1-14, April.
    3. Zhang, Kun & Zhang, Zong-Yong & Liang, Qiao-Mei, 2017. "An empirical analysis of the green paradox in China: From the perspective of fiscal decentralization," Energy Policy, Elsevier, vol. 103(C), pages 203-211.
    4. Ahn, Hannah & Ribera, Luis A., 2016. "The Effects of Border Violence on U.S.-Mexican Cattle Trade," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229701, Southern Agricultural Economics Association.

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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