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Impact of product-related environmental regulations in Asia : descriptive statistics from a survey of firms in Penang, Malaysia


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


This paper summarizes the main results of a unique firm survey conducted in Penang, Malaysia in 2012 on product-related environmental regulations. The results show that firms receiving foreign-direct investment have adapted well to regulations but faced more rejections. Several research questions are addressed and examined by using the survey data. Major findings are as follows. First, adaptation involves changes in input procurement and market diversification, which potentially changes the structure of supply chains. Second, belonging to global supply chains is a key factor in compliance, but this requires firms to meet tougher customer requirements. Third, there is much room for government policy to play a role in assisting firms.

Suggested Citation

  • Michida, Etsuyo & Ueki, Yasushi & Nabeshima, Kaoru, 2014. "Impact of product-related environmental regulations in Asia : descriptive statistics from a survey of firms in Penang, Malaysia," IDE Discussion Papers 457, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper457

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    More about this item


    Malaysia; Environmental protection; Environmental policy; Industrial standards; International trade; 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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