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Trade-induced technological change: Analyzing economic and environmental outcomes

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Listed author(s):
  • Managi, Shunsuke
  • Kumar, Surender

Abstract

We analyze how changes in trade openness are related to induced technological innovations that are not only GDP increasing but also pollution saving. Our model includes by-products of carbon dioxide and sulfur dioxide emissions. We estimate a directional distance function for 76 countries over the period 1963-2000 to measure exogenous and trade-induced technological change. On average, we find substantial trade-induced technological progress, and its magnitude is about one third of the overall technological change. The trade-induced technological changes, however, are GDP reducing and pollution increasing. Empirically, we find that increased trade openness correlates to increased pollution.

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File URL: http://www.sciencedirect.com/science/article/pii/S0264-9993(09)00033-9
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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 26 (2009)
Issue (Month): 3 (May)
Pages: 721-732

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Handle: RePEc:eee:ecmode:v:26:y:2009:i:3:p:721-732
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

Keywords: Trade-induced technological change Exogenous technological change Environmental effects Total factor productivity Directional distance function;

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Cited by:

  1. Mona Haddad & Ben Shepherd, 2011. "Managing Openness : Trade and Outward-oriented Growth After the Crisis," World Bank Publications, The World Bank, number 2283, August.
  2. Nicole A. MATHYS & Jaime DE MELO, 2010. "Trade and Climate Change: The Challenges Ahead," Working Papers P14, FERDI.
  3. Vouldis, Angelos T. & Michaelides, Panayotis G. & Tsionas, Efthymios G., 2010. "Estimating semi-parametric output distance functions with neural-based reduced form equations using LIML," Economic Modelling, Elsevier, vol. 27(3), pages 697-704, May.
  4. repec:kap:iaecre:v:16:y:2010:i:4:p:410-418 is not listed on IDEAS
  5. Catherine Boulatoff & Michael Jenkins, 2010. "Long-term Nexus Between Openness, Income, and Environmental Quality," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(4), pages 410-418, November.
  6. Le, Thai-Ha & Chang, Youngho & Park, Donghyun, 2016. "Trade openness and environmental quality: International evidence," Energy Policy, Elsevier, vol. 92(C), pages 45-55.
  7. Debashis Chakraborty & Sacchidananda Mukherjee, 2013. "Do Trade and Investment Flows Lead to Higher CO2 Emissions? Some Panel Estimation Results," Working Papers 1321, Indian Institute of Foreign Trade.
  8. Managi, Shunsuke, 2012. "Trade, economic growth and environment," IDE Discussion Papers 342, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  9. Barros, Carlos Pestana & Managi, Shunsuke, 2009. "Productivity assessment of Angola's oil blocks," Energy, Elsevier, vol. 34(11), pages 2009-2015.
  10. Meng, Ming & Niu, Dongxiao, 2012. "Three-dimensional decomposition models for carbon productivity," Energy, Elsevier, vol. 46(1), pages 179-187.
  11. Helen Tammela Naughton, 2010. "Globalization and Emissions in Europe," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 7(2), pages 503-519, December.
  12. Zhang, Ning & Wang, Bing, 2015. "A deterministic parametric metafrontier Luenberger indicator for measuring environmentally-sensitive productivity growth: A Korean fossil-fuel power case," Energy Economics, Elsevier, vol. 51(C), pages 88-98.
  13. Surender Kumar & Hidemichi Fujii & Shunsuke Managi, 2014. "Substitute or complement? Assessing renewable and non-renewable energy in OCED countries," Working Papers SDES-2014-8, Kochi University of Technology, School of Economics and Management, revised Oct 2014.
  14. Barros, Carlos Pestana & Managi, Shunsuke, 2009. "Regulation, pollution and heterogeneity in Japanese steam power generation companies," Energy Policy, Elsevier, vol. 37(8), pages 3109-3114, August.
  15. Kumar, Surender & Managi, Shunsuke, 2009. "Energy price-induced and exogenous technological change: Assessing the economic and environmental outcomes," Resource and Energy Economics, Elsevier, vol. 31(4), pages 334-353, November.
  16. Yu-Ying Lin, Eugene & Chen, Ping-Yu & Chen, Chi-Chung, 2013. "Measuring green productivity of country: A generlized metafrontier Malmquist productivity index approach," Energy, Elsevier, vol. 55(C), pages 340-353.

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