What shapes export competitiveness of home country firms? Host country environmental regulations or labor standards

Qin Wang and Ying Wang

International Review of Financial Analysis, 2025, vol. 103, issue C

Abstract: This paper examines the impact of host country environmental regulations and labor standards on the export competitiveness of home countries. Our findings indicate that as follows: (1) environmental regulations and labor standards vary significantly across three dimensions (i.e., levels of economic development, EU membership, and regional differences); (2) stricter environmental regulations and higher labor standards in host countries enhance the export competitiveness of home countries; (3) the positive impact of host country environmental regulations on home country competitiveness differs based on economic development levels and regional disparities; and (4) higher labor standards in host countries weaken the positive effect of host country environmental regulations, whereas higher labor standards in home countries strengthen this effect.

Keywords: Export competitiveness; Environmental regulation; Labor standard; Gravity model (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:103:y:2025:i:c:s1057521925003308

DOI: 10.1016/j.irfa.2025.104243

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