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Trade Opportunities for Climate Smart Goods and Technologies in Asia

Author

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  • Soumyananda Dinda

    (Chandragupt Institute of Management Patna, E-mail: s.dinda@cimp.ac.in, sdinda2000@yahoo.co.in, & sdinda@gmail.com)

Abstract

This study focuses on trade opportunities of climate smart goods and technologies (CSGT) in Asia. Paper mainly highlights the export gaps for climate smart goods and technologies (CSGT) in Asia and identifies the trade opportunities among trade partners in intraregional and interregional. Applying the gravity model we estimate the export gap for the CSGT as the difference between the actual bilateral export flow and the mean value predicted by the model. In other words, ‘export gap’ is the difference between the actual and predicted export value. There is a scope to increase the export of climate smart goods and technologies with trading partners when the actual trade is below the predicted value ( i.e., negative value of the export gap). This gap actually provides the opportunity to raise the trade and attracting investment in CSGT sector and thereby development takes place. This paper also identifies the export gaps in CSGT for each regional member in its trade with partners within the region, EU, and North America (i.e., the US and Canada). This study contributes to the empirical literature in terms of measuring and identifying the potential trade opportunity of CGST in Asia. The paper also suggests that the climate smart export-led growth model is still valid in emerging Asian countries.

Suggested Citation

  • Soumyananda Dinda, 2011. "Trade Opportunities for Climate Smart Goods and Technologies in Asia," Working Papers 2011/16, Maastricht School of Management.
  • Handle: RePEc:msm:wpaper:2011/16
    as

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    File URL: http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2011-16.pdf
    File Function: First version, 2011
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    References listed on IDEAS

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    1. I-Hui Cheng & Howard J. Wall, 2005. "Controlling for heterogeneity in gravity models of trade and integration," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 49-63.
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    3. K. Kalirajan, 1999. "Stochastic varying coefficients gravity model: An application in trade analysis," Journal of Applied Statistics, Taylor & Francis Journals, vol. 26(2), pages 185-193.
    4. Peter Drysdale & Xinpeng Xu, 2007. "Taiwan's Role in the Economic Architecture of East Asia and the Pacific," World Scientific Book Chapters,in: Economic Reform And Cross-Strait Relations Taiwan and China in the WTO, chapter 5, pages 149-185 World Scientific Publishing Co. Pte. Ltd..
    5. Peter Egger, 2002. "An Econometric View on the Estimation of Gravity Models and the Calculation of Trade Potentials," The World Economy, Wiley Blackwell, vol. 25(2), pages 297-312, February.
    6. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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    Citations

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    Cited by:

    1. Dinda, Soumyananda, 2013. "Climate Change Creates Trade Opportunity in India," MPRA Paper 50636, University Library of Munich, Germany, revised 14 Oct 2013.
    2. Dinda, Soumyananda, 2011. "Climate Change and Development: Trade Opportunities of Climate Smart Goods and Technologies in Asia," MPRA Paper 34883, University Library of Munich, Germany, revised Nov 2011.
    3. Dinda, Soumyananda, 2013. "Inclusive Green Growth and Sustainable Development through Productive Consumption," MPRA Paper 50574, University Library of Munich, Germany, revised 09 Sep 2013.
    4. Dinda, Soumyananda, 2011. "Climate Change, Trade, and Competitiveness: Climate Trade Performance of India, SAARC and Asia Pacific Region," MPRA Paper 59423, University Library of Munich, Germany, revised 17 Aug 2014.

    More about this item

    Keywords

    Bilateral trade flow; Climate Smart Goods and Technologies; Export; Gravity model; Export gap; Potential Trade; Asia.;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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