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Consequences of Trade Regulations on International Trade in Remanufacturing

Author

Listed:
  • Feng Fu

    (School of Business, Chengdu University of Technology, Chengdu 610059, P. R. China)

  • Shuangying Chen

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P. R. China)

  • Wei Yan

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P. R. China)

Abstract

The remanufacturing industry is experiencing a gradual increase in international trade. Accordingly, manufacturers are encountering a multitude of regulations in this cross-border trade of remanufactured products, such as import prohibitions/bans, environmental regulations, and tariff barriers. In this paper, we investigated the implications of exporting remanufactured products to the international market with or without trade regulations. Our analysis reveals that, although the international market for remanufacturing invariably benefits the manufacturer, trade regulations are a disadvantage to remanufactured exports. Thus, while the quality of remanufactured products increases, the adverse effect of trade regulations could be weakened. Additionally, we reveal that trade regulations may be detrimental to the environment with a higher rate of used core collection and disposal impact. Thus, policymakers should take care to regulate the international market for remanufactured goods rather than implementing a one-size-fits-all solution.

Suggested Citation

  • Feng Fu & Shuangying Chen & Wei Yan, 2023. "Consequences of Trade Regulations on International Trade in Remanufacturing," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 40(02), pages 1-25, April.
    • Handle: RePEc:wsi:apjorx:v:40:y:2023:i:02:n:s0217595922500166
    DOI: 10.1142/S0217595922500166
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