The Product-Related Environmental Regulation, Innovation, and Competitiveness: Empirical Evidence from Malaysian and Vietnamese Firms
Qizhong Yang and
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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
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
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Persistent link: https://EconPapers.repec.org/RePEc:osp:wpaper:17e007
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