Trade and Environment: Do Spatial Effects Matter?

Sardor Azam

MPRA Paper from University Library of Munich, Germany

Abstract: This study tests the suitability of spatial effects in trade context. The paper analyzes the effect of the strictness of environmental regulations on trade performance on the basis of augmented gravity model. It compares spatial estimates with those of OLS and concludes that spatial effects are important. The results indicate that Spatial Error Model fits best to the data at hand. It is shown that environmental standards are positively correlated with trade.

Keywords: Exports; Augmented gravity model; Environmental Performance Index; Spatial econometrics; Multilateral resistance (search for similar items in EconPapers)
JEL-codes: C31 F18 Q56 (search for similar items in EconPapers)
Date: 2016-02, Revised 2016-06
New Economics Papers: this item is included in nep-env and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Journal of Applied Economics and Business Research 2.6(2016): pp. 161-174

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:73113

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