Degree of environmental stringency and the impact on trade patterns

Degree of environmental stringency and the impact on trade patterns Purpose – To construct an index (index of environmental sensitivity performance) to be used in a cross‐country trade model in order to analyze the effect of various degrees of environmental stringency on the trade patterns, and especially on the export performance of the countries. Design/methodology/approach – The gravity model of trade is used in order to find the effects of environmental stringency on the variation in trade flows. Findings – The study shows that environmental stringency has an important impact on the export of the countries. The impact of the degree of environmental stringency on the exports is significantly negative suggesting an inverse relationship between export values and relative environmental sensitivity performance of the nations. Originality/value – This study supports the argument that the environmental stringency level differential between developing and developed nations is a crucial criteria in terms of explaining shifts in the trade patterns and international specialization of the countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic Studies Emerald Publishing

Degree of environmental stringency and the impact on trade patterns

Journal of Economic Studies, Volume 33 (1): 22 – Jan 1, 2006

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Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
0144-3585
DOI
10.1108/01443580610639884
Publisher site
See Article on Publisher Site

Abstract

Purpose – To construct an index (index of environmental sensitivity performance) to be used in a cross‐country trade model in order to analyze the effect of various degrees of environmental stringency on the trade patterns, and especially on the export performance of the countries. Design/methodology/approach – The gravity model of trade is used in order to find the effects of environmental stringency on the variation in trade flows. Findings – The study shows that environmental stringency has an important impact on the export of the countries. The impact of the degree of environmental stringency on the exports is significantly negative suggesting an inverse relationship between export values and relative environmental sensitivity performance of the nations. Originality/value – This study supports the argument that the environmental stringency level differential between developing and developed nations is a crucial criteria in terms of explaining shifts in the trade patterns and international specialization of the countries.

Journal

Journal of Economic StudiesEmerald Publishing

Published: Jan 1, 2006

Keywords: Environmental regulations; Pollution; Export markets; International trade

References

  • Gravity with gravitas: a solution to the Border puzzle
    Anderson, J.E.; Wincoop, E.V.
  • Is free trade good for the environment?
    Antweiler, W.; Copeland, B.R.; Taylor, M.S.

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