International trade and environmental policy: How effective is 'eco-dumping'?

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11 Citations (Scopus)

Abstract

This paper examines the effects of environmental regulations on the international competitiveness of domestic industries. A generalised GDP function, which incorporates both technology changes and increasing returns to scale is set up and a flexible translog function form is used to approximate this GDP function. A seemingly unrelated regression estimation technique is employed to estimate a system of sectoral share equations derived from the generalised GDP function. The basic hypothesis is that while the environmental factor is not a significant determinant of the international competitiveness of environmentally sensitive industries, technology is. The result supports this hypothesis and suggests that so-called eco-dumping is not an effective strategy in this context.
Original languageEnglish
Pages (from-to)71-90
Number of pages20
JournalEconomic Modelling
Volume17
Issue number1
Publication statusPublished - 1 Jan 2000

Keywords

  • Eco-dumping
  • International competitiveness
  • Trade and environment

ASJC Scopus subject areas

  • Economics and Econometrics

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