The Harmonization of Technical Barriers to Trade, Innovation and Export Behavior: Theory with an application to EU Environmental Data

Andrea Mantovani and M. Vancauteren

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: A key feature of the EU harmonization of technical barriers to trade (TBT s) is that exporting firms may entail a compliance costs. This paper provides theoretical and empirical work. In a simple Cournot duopoly with trade, we pursue the idea that process R&D has a positive spillover effect (with different intensities) in lowering the compliance cost and investigate the impact of an R&D subsidy. Using a self-constructed database, which specifically identifies sectors where the EU has sought to introduce harmonized environmental regulations, we find evidence that support this prediction of the theory

Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:480

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