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Impact on Asian firms of product-related environmental regulations through global supply chains : a study of firms in Malaysia

Author

Listed:
  • Michida, Etsuyo
  • Ueki, Yasushi
  • Nabeshima, Kaoru

Abstract

This paper sheds light on the important role played by global supply chains in the adaptation to product-related environmental regulations imposed by importing countries, with a focus on chemicals management. By utilizing a unique data collected in Penang, Malaysia, we depict the supply chain structures and how differences among firms in participation to global supply chain link to differences in chemical management. We found that firms belonging to a supply chain are in a better position to comply with these regulations because information and requirements are transmitted through global supply chains. In contrast, those firms that are neither exporters nor a part of a global supply chain lack the knowledge and information channels relevant to chemical management in a product.

Suggested Citation

  • Michida, Etsuyo & Ueki, Yasushi & Nabeshima, Kaoru, 2014. "Impact on Asian firms of product-related environmental regulations through global supply chains : a study of firms in Malaysia," IDE Discussion Papers 453, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper453
    as

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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37722&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2014
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    References listed on IDEAS

    as
    1. Tong, Xin & Shi, Jin & Zhou, Yu, 2012. "Greening of supply chain in developing countries: Diffusion of lead (Pb)-free soldering in ICT manufacturers in China," Ecological Economics, Elsevier, vol. 83(C), pages 174-182.
    2. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, pages 300-316.
    3. Chen, Natalie & Novy, Dennis, 2012. "On the measurement of trade costs: direct vs. indirect approaches to quantifying standards and technical regulations," World Trade Review, Cambridge University Press, vol. 11(03), pages 401-414, July.
    4. repec:wsi:wschap:9789813144415_0004 is not listed on IDEAS
    5. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 4, pages 63-77 World Scientific Publishing Co. Pte. Ltd..
    6. Ramungul, Nudjarin & Michida, Etsuyo & Nabeshima, Kaoru, 2013. "Impact of product-related environmental regulations / voluntary requirements on Thai firms," IDE Discussion Papers 383, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Chen, Sau Soon & Mohd, Helme bin Mohd Helan & Zanariah, Ujang & Michida, Etsuyo & Nabeshima, Kaoru, 2014. "Role of laboratories for adapting product-related environmental regulations (PRERs)," IDE Discussion Papers 452, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    9. Michida, Etsuyo, 2014. "The policy impact of product-related environmental regulations in Asia," IDE Discussion Papers 451, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Chi Song & Heping Zhang, 2014. "Discussion," International Statistical Review, International Statistical Institute, vol. 82(3), pages 359-361, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Malaysia; Environmental protection; International trade; Industrial standards; Foreign investments; Global supply chain; FDI; PRERs (product-related environmental regulations); REACH; RoHS;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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