Trade and Sustainability: How Strong are the Empirical Linkages between Trade Structures and Sustainability Performance?  

Oleh:

Nakawiroj, Wasutadon

Jenis: Article from Proceeding
Dalam koleksi: SIBR-Thammasat 2014 Conference on Interdisciplinary Business & Economics Research June 5th- 7th, 2014 di Emerald Hotel Bangkok, page 1-27.
Topik: Sustainable Development; International Trade; Environment; Pollution
Fulltext: b14-140.pdf (287.34KB)

Isi artikel

The discussion regarding the relationship between trade and sustainability has been a long-standing one. This paper sets out to examine the relationship running between countries’ indicators of sustainability and their actual trading patterns, using a panel data approach incorporating all categories of traded goods (excluding trade in services) for a sample of 85 countries over a 10-year period. It is verified that the environmental performance of countries, measured by the EPI, tends to be reflected in countries’ trading behavior; better environmental performance are often transmitted to trade, in the form of lowered levels of trade-associated pollution, while strong legal and contract enforcement discourages such trade-induced pollution in all scenarios. It is observed that, for the global multilateral trading circle as a whole, and developing countries, environmental quality at home is significantly linked with export-based pollution,and will also likely affect environmental quality elsewhere through import patterns. At any rate, environmental performance does not make much difference amongst developed countries, whereas the rules of law are still successful in deterring pollution. Empirically, one can say that the aspects of environmental quality and better enforcement mechanisms are successfully transmitted into international trade, with some differences between country groups.

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