Trade and environment: further empirical evidence from heterogeneous panels using aggregate data

Thomas Jobert (), Fatih Karanfil and Anna Tykhonenko ()
Additional contact information
Thomas Jobert: GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur
Fatih Karanfil: EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: Empirical studies on the trade-environment nexus that use panel data face two simultaneous challenges. One is associated with the potential presence of unobserved cross-country heterogeneity, while the other is due to the use of aggregate data. In this paper, we apply both the dynamic fixed effects and empirical iterative Bayes estimators to show that when country heterogeneity is accurately accounted for in the estimation, it is possible to obtain significant impacts of trade variables on the environment, even though we use aggregate data. Furthermore, using both the parameter estimates and indicators of stringency of environmental regulations, we show that at lower levels of stringency, the probability of having pollution-intensive foreign direct investments increases with a decrease in stringency, but the opposite is true for higher levels of regulatory stringency. This implies that pollution havens may exist only if environmental regulations are very lax or nonexistent.

Keywords: Bayesian shrinkage estimator; regulatory stringency; trade openness; CO2 emissions; FDI (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Trade and Environment: Further Empirical Evidence from Heterogeneous Panels Using Aggregate Data (2015)
Working Paper: Trade and Environment: Further Empirical Evidence from Heterogeneous Panels Using Aggregate Data (2012)
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:hal:wpaper:halshs-01295613

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().