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The Product-Related Environmental Regulation, Innovation, and Competitiveness: Empirical Evidence from Malaysian and Vietnamese Firms

Qizhong Yang and Tsunehiro Otsuki
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Qizhong Yang: The Graduate School of Economics, Osaka University
Tsunehiro Otsuki: Osaka School of International Public Policy, Osaka University

No 17E007, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: This study examined the impact of two PRERs released by the EU—RoHS and REACH—on Malaysian and Vietnamese firms’ compliance. The analysis considers productivity as a realization of innovations and examines the R&D enhancement effect of PRERs. The effect of PRERs on productivity is also broken down into direct and indirect effects through R&D enhancement. The result shows that the response to REACH can create incentives to advance R&D, and productivity can increase through both direct and indirect channels. No relationship between the response to RoHS and R&D expenditure is found. Further analysis shows that firms comply with RoHS and REACH in different ways, but just the ability to continue exporting to the EU motivates compliance.

Keywords: RoHS; REACH; Innovation; Productivity; Porter Hypothesis (search for similar items in EconPapers)
JEL-codes: F18 O31 Q55 Q56 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eff, nep-env, nep-ino, nep-res, nep-sbm, nep-sea and nep-tid
Date: 2017-11
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