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International Trade And Evnvironmental Policy : How Effective Is €˜eco-Dumpingã¢Â‚¬Â„¢?

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  • Xinpeng Xu

    (AJRC)

Abstract

The effects of environmental regulations on the international competitiveness of domestic industries have become an increasing concern in the trade liberalisation process in the 1990s. This paper examines the significance of environmental policy for trade. A generalised GNP function, which incorporates both technology changes and increasing returns to scale is set up and a flexible translog function form is used to approximate this generalised GNP function. Seemingly unrelated regression is employed to estimate a system of sectoral share equations derived from the generalised GNP function. The basic hypothesis is that while the environmental factor is not a significant determinant of the international competitiveness of environmentally sensitive industries, technology is. The result supports this hypothesis and suggests that socalled eco-dumping is not an effective strategy in this context.

Suggested Citation

  • Xinpeng Xu, 1999. "International Trade And Evnvironmental Policy : How Effective Is €˜eco-Dumpingã¢Â‚¬Â„¢?," Trade Working Papers 22867, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:tradew:22867
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    File URL: http://www.eaber.org/node/22867
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    References listed on IDEAS

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    1. Brander, James A. & Scott Taylor, M., 1997. "International trade between consumer and conservationist countries," Resource and Energy Economics, Elsevier, vol. 19(4), pages 267-297, November.
    2. Markusen, James R., 1997. "Costly pollution abatement, competitiveness and plant location decisions," Resource and Energy Economics, Elsevier, vol. 19(4), pages 299-320, November.
    3. Drysdale, Peter, 1998. "Japan's approach to Asia Pacific economic cooperation," Journal of Asian Economics, Elsevier, vol. 9(4), pages 547-554.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    environmental regulations; Trade Liberalisation; GNP;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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