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Corporate Social Responsibility and its Macroeconomic Implications

  • Robert SOVA

    (The Bucharest Academy of Economic Studies, Romania)

  • Ion STANCU

    (The Bucharest Academy of Economic Studies, Romania)

  • Laurentiu FRATILA

    ()

    (The Bucharest Academy of Economic Studies, Romania)

  • Anamaria SOVA

    (Economic&Business Research Center, Bucharest, Romania)

One of main concern of policy makers is pollution and hence the improvement of the environmental quality. The implementation of environment policies aims at improving life and product quality in order to replace those obtained by high polluting processes by less polluting ones. Countries having more strict environmental regulations are likely to suffer from a significant increase of their production costs. As a consequence these countries become less competitive on the international market and may lose their market share. In this context, an increasing attention was granted to the impact of environment policies on foreign trade. Our purpose in this paper is to investigate whether Corporate social responsibility introduced into Eastern European countries have led or not to a decline of exports towards the European Union (EU), and if so how much? This question is important since it is related to the preoccupation of EU new members to increase their exports and the quality of their products. Our econometric methodology based on recent developments of panel data techniques allow us to control for unobservable heterogeneity and hence to get robust empirical robust. Our results highlight a moderated impact of environmental regulations on foreign trade.

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Article provided by Faculty of Management, Academy of Economic Studies, Bucharest, Romania in its journal REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT.

Volume (Year): 12 (2011)
Issue (Month): 1 (March)
Pages: 172-183

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Handle: RePEc:rom:rmcimn:v:12:y:2011:i:1:p:172-183
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  1. Céline CARRERE, 2003. "Revisiting the Effects of Regional Trading Agreements on trade flows with Proper Specification of the Gravity Model," Working Papers 200310, CERDI.
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  6. MANTOVANI Andrea & VANCAUTEREN Mark, . "The Harmonization of Technical Barriers to Trade, Innovation and Export Behavior: Theory with an Application to EU Environmental Regulations," EcoMod2003 330700094, EcoMod.
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  9. Ghosh, Sucharita & Yamarik, Steven, 2004. "Are regional trading arrangements trade creating?: An application of extreme bounds analysis," Journal of International Economics, Elsevier, vol. 63(2), pages 369-395, July.
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