Impact on Asian firms of product-related environmental regulations through global supply chains: a study of firms in Malaysia

Etsuyo Michida, Yasushi Ueki and Kaoru Nabeshima

No 453, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper sheds light on the important role played by global supply chains in the adaptation to product-related environmental regulations imposed by importing countries, with a focus on chemicals management. By utilizing a unique data collected in Penang, Malaysia, we depict the supply chain structures and how differences among firms in participation to global supply chain link to differences in chemical management. We found that firms belonging to a supply chain are in a better position to comply with these regulations because information and requirements are transmitted through global supply chains. In contrast, those firms that are neither exporters nor a part of a global supply chain lack the knowledge and information channels relevant to chemical management in a product.

Keywords: Malaysia; Environmental protection; International trade; Industrial standards; Foreign investments; Global supply chain; FDI; PRERs (product-related environmental regulations); REACH; RoHS (search for similar items in EconPapers)
JEL-codes: F18 O14 (search for similar items in EconPapers)
Date: 2014-03-01
New Economics Papers: this item is included in nep-agr, nep-env, nep-ger, nep-int, nep-res and nep-sea
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 453. 2014-03-01

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