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Title:Environmental regulation and competitiveness: Evidence from Romania PDF Logo
Authors:Arouri, Mohamed El Hedi
Caporale, Guglielmo Maria
Rault, Christophe
Sova, Robert
Sova, Anamaria
Issue Date:2012
Series/Report no.:CESifo Working Paper: Resource and Environment Economics 3916
Abstract:According to the pollution haven hypotheses differences in environmental regulation affect trade flows and plant location. Specifically, environmental stringency should decrease exports and increase imports of dirty goods. This paper estimates a gravity model to establish whether the implementation of more stringent regulations in Romania has indeed affected its competitiveness and decreased exports towards its European trading partners. Our findings do not provide empirical support to the pollution haven hypothesis, i.e. environmental stringency is not found to affect significantly total trade, or its components (pollution intensive trade and pollution intensive trade related to non-resource-based trade).
Subjects:environmental stringency
competitiveness
gravity model
JEL:F14
Q28
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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