Intra‐industry Trade Liberalization and the Environment

Benarroch, Michael; Gaisford, James D.

doi:10.1111/roie.12143

Cited by 10 publications

(3 citation statements)

References 39 publications

(65 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…They show that whether trade liberalization leads to a deterioration of environmental quality depends mainly on two factors: whether pollution is global or local, and whether the country that opens up to trade is of the “clean” or “dirty” category. In a similar vein, but in a model that incorporates inter‐ and intra‐industry trade, Benarroch and Gaisford () show that when intra‐industry trade is in the “dirty” category, lowering trade barriers would result in an increase in environmental degradation for all countries.…”

Section: Introductionmentioning

confidence: 96%

Environmental regulation and love for variety

Echazu

Heintzelman

2018

Rev International Economics

View full text Add to dashboard Cite

Using a model of monopolistic competition, we examine the relationship between intra‐industry trade and environmental regulation. The decisions on emission standards set by each country show strong strategic interactions. In closed economies regulations act as strategic substitutes, and in equilibrium there is under‐regulation relative to the cooperative outcome. Trade liberalization may lead to stricter or laxer environmental standards, depending on the consumers’ preference for product variety. In addition, we show that with open trade environmental regulations may act as strategic complements and countries may set environmental standards that are as strict (or stricter) than those in the cooperative outcome.

show abstract

Section: Introductionmentioning

confidence: 96%

Environmental regulation and love for variety

Echazu

Heintzelman

2018

Rev International Economics

View full text Add to dashboard Cite

show abstract

“…These changes were driven by within-plant responses to NAFTA rather than a compositional change in local industries. Other studies confirm the fact that trade liberalization can indeed improve environmental quality (Benarroch and Gaisford, 2014;Copeland, 2013;Forslid et al, 2017Forslid et al, , 2017Fung and Maechler, 2007;Gale IV, 1995;Ghani, 2012;Hu and McKitrick, 2016;Hubbard, 2014;Shen, 2008).…”

Section: Literature Reviewmentioning

confidence: 88%

Environmental Air Quality and Health: Evidence from Trade Liberalization

Navaei

Farnoud²

2021

Am. j. trade policy

View full text Add to dashboard Cite

This paper explores the potential externality of trade liberalization between the US and China on air pollution and infants’ health outcomes. Exploiting the differential impact of tariff reductions due to trade liberalization across industries combined with compositional variations of industry-specific employment across counties as the main source of identification strategy and using the universe of birth records in the US over the years 1990-2017 (over 97 million observations), we document substantial improvements in birth outcomes of mothers residing in counties with higher exposure to trade policy change. The exposed counties experienced sharp drops in employment specifically for manufacturing industries and revealed sharp reductions in a wide array of pollutants. A 1 percent reduction in tariff rates is associated with an 11.5 and 12.7 percentage point reduction in the likelihood of low birth weight and preterm birth, respectively.

show abstract

“…In order to obtain country i's predicted IIT in a year, each predicted bilateral IIT value involving i is weighted by the sum of i's corresponding (predicted) bilateral imports and exports relative to the sum of i's (predicted) overall imports and exports. 9 Next, the first-stage equations for GDP per capita and GDP per capita squared are specified as the following:…”

Section: Empirical Methodologymentioning

confidence: 99%

On the environmental consequences of intra-industry trade

Roy

2017

Journal of Environmental Economics and Management

View full text Add to dashboard Cite

In the trade and environment debate, the relevance of intra-industry trade (IIT) cannot be overemphasized. However, an empirical analysis of the environmental implications of such trade is long overdue. Although a number of studies have largely found overall trade to be pro-environment, the consequences of IIT may di §er due to lower adjustment costs, easier technology absorption, and a distinct composition e §ect. In this light, we provide the first empirical investigation of IIT's impact on the environment. Apart from utilizing data on eight environmental indicators from roughly 200 countries over 2000-2005, we also attend to concerns over endogeneity by instrumenting for our trade and income variables. Across several sets of instruments, we consistently find (i) IIT to typically benefit the environment, (ii) overall trade to be less pro-environment than IIT, and (iii) concerns over endogeneity to be relevant.

show abstract

Intra‐industry Trade Liberalization and the Environment

Cited by 10 publications

References 39 publications

Environmental regulation and love for variety

Environmental regulation and love for variety

Environmental Air Quality and Health: Evidence from Trade Liberalization

On the environmental consequences of intra-industry trade

Contact Info

Product

Resources

About