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The Harmonization of Technical Barriers to Trade, Innovation and Export Behavior: Theory with an application to EU Environmental Data

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  • A. Mantovani
  • M. Vancauteren

Abstract

A key feature of the EU harmonization of technical barriers to trade (TBT’s) is that exporting firms may entail a compliance costs. This paper provides theoretical and empirical work. In a simple Cournot duopoly with trade, we pursue the idea that process R&D has a positive spillover effect (with different intensities) in lowering the compliance cost and investigate the impact of an R&D subsidy. Using a self-constructed database, which specifically identifies sectors where the EU has sought to introduce harmonized environmental regulations, we find evidence that support this prediction of the theory

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 480.

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Date of creation: 2003
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Handle: RePEc:bol:bodewp:480
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Cited by:

  1. Foletti, Liliana & Shingal, Anirudh, 2014. "Trade effects of MRL harmonization in the EU," Papers 720, World Trade Institute.

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