EconPapers    
Economics at your fingertips  
 

Can trade liberalization promote green production? Evidence from China's manufacturing enterprises

Mengdi Liu, Bing Zhang () and Xianchun Liao

Journal of Asian Economics, 2022, vol. 79, issue C

Abstract: Whether international trade causes environmental damage to developing countries has caused widespread concern. We estimate trade liberalization's impact on environmental performance using unique firm-level pollution data in China. By using maximum tariff rates from China's accession agreement as instrumental variables for actual tariff rates, we find that cuts in import tariffs enhance the average SO2 emission. Changes in the composition of products in the polluting and non-polluting industries can explain the substantial increase in the average SO2 emission. However, using multiple firm-level indicators, we demonstrate the existence of the trade-induced technique effect that trade liberalization can promote cleaner production.

Keywords: WTO; Tariff reduction; Technology upgrading; Corporate environmental performance (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1049007821000981
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:79:y:2022:i:c:s1049007821000981

DOI: 10.1016/j.asieco.2021.101369

Access Statistics for this article

Journal of Asian Economics is currently edited by C. Wiemer

More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-09-28
Handle: RePEc:eee:asieco:v:79:y:2022:i:c:s1049007821000981