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Determinants of Trade in Recyclable Wastes between Developing and Developed Countries

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  • Higashida, Keisaku
  • Managi, Shunsuke

Abstract

This paper examines the trade volume of recyclable wastes. In particular, we analyze the trade from developed countries to developing countries. The reason is that, when a recycling process is separated from the production process of final goods or/and the consumption process, it would be located in the labor-abundant (i.e., less developed developing) countries. Then, the environmental and health problems might become serious in developing countries. The relationship between the wages and the volume of imports is our focus. We demonstrate that, the higher the wage/per capita income of a developing country, the more recyclable wastes it imports. This implies that there is no evidence for a pollution haven in the sense that the dirty recycling sectors expand in the less developed developing countries more rapidly than the more developed developing countries. Furthermore, we discuss the possibility that the trade restriction for reducing environmental damage is accompanied by a significant loss in efficiency.

Suggested Citation

  • Higashida, Keisaku & Managi, Shunsuke, 2009. "Determinants of Trade in Recyclable Wastes between Developing and Developed Countries," CCES Discussion Paper Series 15, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
  • Handle: RePEc:hit:ccesdp:15 Note: This version: April 2009
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    Cited by:

    1. Toshihiro Okubo & Yuta Watabe & Kaori Furuyama, 2016. "Export of Recyclable Materials: Evidence from Japan," Asian Economic Papers, MIT Press, pages 134-148.
    2. Sawhney, Aparna & Majumder, Piyali, 2015. "Is India becoming a waste haven of metal scrap?," MPRA Paper 67186, University Library of Munich, Germany.
    3. repec:ebl:ecbull:eb-17-00361 is not listed on IDEAS

    More about this item

    Keywords

    trade and recycling; recyclable wastes; gravity model;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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