Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223017 
Year of Publication: 
2020
Series/Report no.: 
CAWM Discussion Paper No. 119
Publisher: 
Westfälische Wilhelms-Universität Münster, Centrum für Angewandte Wirtschaftsforschung (CAWM), Münster
Abstract: 
Is trade liberalization contributing to cleaner production amongst manufacturing firms? Theoretical predictions and empirical evidences are mixed. This study utilizes China's dual trade regime and China's WTO entry in 2001 to construct a unique micro dataset on manufacturing firms for China for the period 2000-2007, and performs a difference-in-difference estimation strategy to directly examine this issue. Specifically, normal exporters that saw tariff changes during the same period form the treatment group; while processing exporters that enjoy tariff-exemptions both pre- and post-WTO entry serve as the control group. Results show that China's WTO entry contributed to a lower SO2 emission intensity for normal exporting firms. We further examine the mechanism and show that the productivity channel accounted for the observed pattern. Specifically, more efficient normal exporters saw greater decline of SO2 emission intensity than average normal exporters. This study contributes to a better understanding of the impact of trade on the environment, especially in developing countries. It also complements the literature in terms of providing China's micro evidence on the impact of trade liberalization on firm's environmental performance.
Subjects: 
WTO
trade liberalization
dual trade regime
SO2 emission intensity
China
JEL: 
F18
Q53
Q56
Document Type: 
Working Paper

Files in This Item:
File
Size
338.03 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.