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

  • A. Mantovani
  • M. Vancauteren

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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  1. Frankel, Jeffrey A. & Stein, Ernesto & Wei, Shang-Jin, 1996. "Regional Trading Arrangements: Natural or Super-Natural," Center for International and Development Economics Research (CIDER) Working Papers 233421, University of California-Berkeley, Department of Economics.
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  11. Wallner, Klaus, 1998. "Mutual Recognition and the Strategic Use of International Standards," SSE/EFI Working Paper Series in Economics and Finance 254, Stockholm School of Economics.
  12. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
  13. Miguel León-Ledesma, 2005. "Exports, Product Differentiation and Knowledge Spillovers," Open Economies Review, Springer, vol. 16(4), pages 363-379, October.
  14. Nadiri, M. Ishaq & Prucha, Ingmar R., 1997. "Sources of growth of output and convergence of productivity in major OECD countries," International Journal of Production Economics, Elsevier, vol. 52(1-2), pages 133-146, October.
  15. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December.
  16. Allan M. Williams, 1998. "The EU and Central Europe: The Remaking of Economic Relationships," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 89(2), pages 131-149, 05.
  17. Suwa Eisenmann, Akiko & Verdier, Thierry, 2002. "Reciprocity and the Political Economy of Harmonization and Mutual Recognition of Regulatory Measures," CEPR Discussion Papers 3147, C.E.P.R. Discussion Papers.
  18. Baldwin, Richard, 2000. "Regulatory Protectionism, Developing Nations and a Two-Tier World Trade System," CEPR Discussion Papers 2574, C.E.P.R. Discussion Papers.
  19. Soete, Luc, 1987. "The impact of technological innovation on international trade patterns: The evidence reconsidered," Research Policy, Elsevier, vol. 16(2-4), pages 101-130, August.
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