Environmental Regulation and Competitiveness: Evidence from Romania

Mohamed El Hedi Arouri, Guglielmo Maria Caporale, Christophe Rault, Robert Sova and Anamaria Sova

No 3916, CESifo Working Paper Series from CESifo

Abstract: According to the pollution haven hypotheses differences in environmental regulation affect trade flows and plant location. Specifically, environmental stringency should decrease exports and increase imports of “dirty” goods. This paper estimates a gravity model to establish whether the implementation of more stringent regulations in Romania has indeed affected its competitiveness and decreased exports towards its European trading partners. Our findings do not provide empirical support to the pollution haven hypothesis, i.e. environmental stringency is not found to affect significantly total trade, or its components (pollution intensive trade and pollution intensive trade related to non-resource-based trade).

Keywords: environmental stringency; competitiveness; gravity model (search for similar items in EconPapers)
JEL-codes: F14 Q28 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

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Related works:
Journal Article: Environmental Regulation and Competitiveness: Evidence from Romania (2012)
Working Paper: Environmental Regulation and Competitiveness: Evidence from Romania (2010)
Working Paper: Environmental Regulation and Competitiveness: Evidence from Romania (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_3916

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