Environmental Regulation and Competitiveness: Evidence from Romania

Guglielmo Maria Caporale, Christophe Rault, Robert Sova () and Anamaria Sova

No wp995, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: According to the pollution haven hypotheses differences in environmental regulation affect trade flows and plant location. Specifically, environmental stringency should decrease exports and increase imports of “dirty” goods. This paper estimates a gravity model to establish whether the implementation of more stringent regulations in Romania has indeed affected its competitiveness and decreased exports towards its European trading partners. Our findings do not provide empirical support to the pollution haven hypothesis, i.e. environmental stringency is not found to affect significantly total trade, or its components (pollution intensive trade and pollution intensive trade related to non-resource-based trade).

Keywords: environmental stringency; competiveness; gravity model (search for similar items in EconPapers)
JEL-codes: F14 Q28 (search for similar items in EconPapers)
Pages: pages
Date: 2010-06-01
New Economics Papers: this item is included in nep-env, nep-int, nep-reg and nep-tra
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Related works:
Journal Article: Environmental Regulation and Competitiveness: Evidence from Romania (2012)
Working Paper: Environmental Regulation and Competitiveness: Evidence from Romania (2012)
Working Paper: Environmental Regulation and Competitiveness: Evidence from Romania (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:2010-995

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