TY  - GEN
AU  - Harris, Mark N.
AU  - Konya, Laszlo
AU  - Matyas, Laszlo
Y2  - 2014/05/22
Y1  - 2000/07
UR  - http://hdl.handle.net/11343/33675
AB  - Since the early seventies an increasing attention has been paid to the impact environmental policy has on foreign trade. One of the most important issues is whether         countries with relatively strict environmental regulations tend to experience a deterioration of international competitiveness and thus a fall in the exports, and a rise in the imports, of the pollution-intensive commodities or, on the other hand, benefit from the improvement in environmental quality and are likely to develop new comparative advantages in the environmentally more sensitive industries. So far, most empirical         studies have concluded that the proportion of environmental costs to the total production costs is still so marginal that environmental policies have hardly any effect         on comparative advantage patterns and thus on foreign trade. One of the few exceptions is Van Beers and Van den Bergh (1997), who found that stricter regulations         have some negative impact on bilateral trade flows between OECD countries. The aim of this paper is to show that this outcome is partly due to model mis-specification. The      analysis is based on a triple indexed fixed-effects model and on its variant's. It is found that, as so on as both the importing and exporting country specific effects are taken into consideration, the relationship between stricter regulations and foreign trade becomes statistically insignificant. This suggests that environmental costs do not have a real impact, neither negative nor positive, on foreign trade.
N1  - application/pdf
LA  - eng
KW  - JEL classification: C23 models with panel data
KW  - F18 trade and environment
KW  - gravity model
KW  - panel data
KW  - foreign trade
KW  - environmental regulation
KW  - OECD countries.
T1  - Modelling the Impact of Environmental Regulations on Bilateral Trade Flows: OECD, 1990-96
L1  - /bitstream/handle/11343/33675/65801_00000114_01_wp2000n11.pdf?sequence=1&isAllowed=y
ER  -