Environmental Regulation and Competitiveness: Evidence from Romania

Guglielmo Maria Caporale (), Christophe Rault (), Robert Aurelian Sova () and Anamaria Sova ()
Additional contact information
Guglielmo Maria Caporale: Brunel University
Anamaria Sova: E.B.R.C. Bucharest

No 5029, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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)
New Economics Papers: this item is included in nep-env, nep-reg, nep-res and nep-tra
Date: 2010-06
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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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