Trap of Race to the Bottom? Evidence from Pollution Intensive Products Trade in India and China

Malini L. Tantri and Varadurga Bhat
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Malini L. Tantri: Centre for Economic Studies and Policy, Institute for Social and Economic Change (ISEC), Bengaluru, Karnataka, India. malini@isec.ac.in

China Report, 2023, vol. 59, issue 2, 154-171

Abstract: This article compares China and India, the two biggest emerging market economies in the world, with respect to their trade in pollution-intensive industries and tries to discuss the policy environment supporting such growth. The analysis is carried out for 13 categories of pollution-intensive products based on the Standard International Trade Classification Revision 3 classification. Our analysis reveals significant growth in trade in these products in both countries, with a higher intra-industry trade and a significant correlation with environmental stringency. Between the two, India seems to be enjoying a better comparative advantage. Findings suggest a need for adopting cleaner production processes and a cautious approach towards industrial promotion.

Keywords: India; China; pollution-intensive products; dirty products; trade (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:chnrpt:v:59:y:2023:i:2:p:154-171

DOI: 10.1177/00094455231181522

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