On the Environmental Consequences of Intra-Industry Trade

No 15-01, Working Papers from Department of Economics, Appalachian State University

Abstract: 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 ?rst 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 ?nd (i) IIT to typically bene?t the environment, Key Words: Intra-Industry Trade, Environmental Quality, Instrumental Variables

JEL-codes: C31 F18 Q56 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-env and nep-int
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Citations: View citations in EconPapers (1)

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Journal Article: On the environmental consequences of intra-industry trade (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:apl:wpaper:15-01

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