Consequences of Trade Regulations on International Trade in Remanufacturing

Feng Fu (), Shuangying Chen () and Wei Yan
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Feng Fu: School of Business, Chengdu University of Technology, Chengdu 610059, P. R. China
Shuangying Chen: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P. R. China
Wei Yan: School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P. R. China

Asia-Pacific Journal of Operational Research (APJOR), 2023, vol. 40, issue 02, 1-25

Abstract: The remanufacturing industry is experiencing a gradual increase in international trade. Accordingly, manufacturers are encountering a multitude of regulations in this cross-border trade of remanufactured products, such as import prohibitions/bans, environmental regulations, and tariff barriers. In this paper, we investigated the implications of exporting remanufactured products to the international market with or without trade regulations. Our analysis reveals that, although the international market for remanufacturing invariably benefits the manufacturer, trade regulations are a disadvantage to remanufactured exports. Thus, while the quality of remanufactured products increases, the adverse effect of trade regulations could be weakened. Additionally, we reveal that trade regulations may be detrimental to the environment with a higher rate of used core collection and disposal impact. Thus, policymakers should take care to regulate the international market for remanufactured goods rather than implementing a one-size-fits-all solution.

Keywords: Remanufacturing; international trade; trade regulations; sustainability (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1142/S0217595922500166

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