Environmental standards, trade and innovation:evidence from a natural experiment

Chakraborty, Pavel (2017) Environmental standards, trade and innovation:evidence from a natural experiment. Environment and Development Economics, 22 (4). pp. 414-446. ISSN 1355-770X

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Abstract

Exploiting a natural experiment involving the imposition of a technical regulation by Germany on Indian leather and textile industries in 1994, a firm-level data set is used to study the trade, adaptation and discontinuity effects and how they vary by firm size. It is found that: (a) regulation significantly increases the export revenues of a firm through use of new technology and high-quality imported raw materials – indicating a possible signalling effect; (b) this gain is concentrated only on the upper half of the firm size distribution, i.e., in the 3rd and 4th quartiles; (c) use of imported raw materials significantly explains low exit probabilities of a firm; and (d) there is evidence of a sorting effect – regulation significantly affecting the operation of small firms.

Item Type:
Journal Article
Journal or Publication Title:
Environment and Development Economics
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
ID Code:
89518
Deposited By:
Deposited On:
08 Jan 2018 16:50
Refereed?:
Yes
Published?:
Published
Last Modified:
01 Jan 2020 11:08