scholarly journals Trade Liberalization and its Environmental Impact in India: An Empirical Analysis

2018 ◽  
Vol 7 (1) ◽  
pp. 111-119
Author(s):  
Ranjan Aneja ◽  
Ummed Singh

The debate on the impact of trade on environment is pertinent considering the increasing volume of trade among world nations and the changes in environmental quality. In India, this increase was higher because of the gradual lifting of the quantitative restrictions and reduction in tariffs after trade liberalization in 1991. The pollution haven effect occurs when trade liberalization, coupled with lax environmental regulations results in increasing economic activities in pollution intensive industries. Using industry level data for the period 1998-2008, for fifty eight manufacturing industries in India, this paper looks at output and export trends and attempts to examine, whether trade liberalization is associated with a shift in production and exportation towards pollution intensive goods industries (pollution haven effect). Manufacturing output has been significantly higher from the water pollution intensive sectors compared to the air and toxic pollution intensive sectors. This evidence provides some support for concerns that there is significant contribution in production of manufacturing industries from dirty industries. The results of the study suggest that while trade liberalization measures have been pursued to promote economic growth in India but they have led to some potentially adverse environmental consequences.

2021 ◽  
Author(s):  
John (Jianqiu) Bai

This paper studies how firms’ internal organization shapes the impact of international trade. Using establishment-level data from the U.S. Census and a difference-in-difference specification, I find that, relative to standalone firms, conglomerates are more likely to restructure after trade liberalization episodes, focusing on their core competency and improving firm productivity and product market performance. Adjustments through the extensive margin account for the majority of the productivity growth differential between conglomerates and standalones experiencing trade shocks. Aggregate industry productivity remains relatively unchanged in industries dominated by conglomerates’ core business but decreases significantly in others. My findings suggest that firms’ internal organization has important consequences on the effects of trade policies. This paper was accepted by Gustavo Manso, finance.


2020 ◽  
Vol 25 (6) ◽  
pp. 561-582 ◽  
Author(s):  
Yunzhi Zhang

AbstractThis paper studies the impact of trade openness and the proportion of exporters on environmental quality through the scale, composition and technique effects from 1998 to 2007 using firm- and city-level data for 287 Chinese cities. Our results reveal that, on average, trade openness has a detrimental impact on the environment in Chinese cities, but this impact remains heterogeneous across regions. A higher proportion of exporters improves the environment in central and eastern cities while generating nevertheless more pollution in western cities. As regards the sector-specific impact, we find that the higher proportion of exporters in the mining and less-polluting manufacturing sectors in eastern cities diminishes the emissions of particulate matter 2.5 (PM2.5). Our finding also suggests that a pollution haven effect emerges in China at the city level. Finally, our results confirm the presence of an environmental Kuznets curve effect for the PM2.5 pollutant across Chinese cities.


2019 ◽  
Vol 11 (7) ◽  
pp. 2128 ◽  
Author(s):  
Meng Tian ◽  
Tongping Li ◽  
Shuwang Yang ◽  
Yiwei Wang ◽  
Shuke Fu

High-speed rail (HSR) can potentially influence various economic activities across space. Estimating the impacts of HSR on service-sector agglomeration (SSA) was proven to be difficult but meaningful. In this paper, prefectural-level data from 1998 to 2016 and a panel data program evaluation method are employed to evaluate the effect of the Wuhan–Guangzhou HSR (WGHSR) on the SSA along the route. In this way, we construct hypothetical counterfactuals for SSA index of the WGHSR cities in the absence of the HSR projects using the SSA index in selected non-HSR cities. By comparing the counterfactual index and the actual index, the evaluation of the WGHSR’s impact on the SSA along the route can be obtained. The results show that: (a) the WGHSR has increased the SSA by 9.44% on average for cities along the WGHSR, and (b) the impacts of the WGHSR on the SSA are heterogeneous. The WGHSR has brought about both spillover effect and “siphon” effect. In addition, whether the HSR influences and how much it could influence the SSA requires other supplementary conditions to be met. As a national strategy in China, the construction plan of HSR should fully consider its heterogeneity of impact on regional development. Policies should be formulated to drive the HSR’s spillover effect to promote regional sustainable development.


Author(s):  
Josh Ederington ◽  
Arik Levinson ◽  
Jenny Minier

Abstract U.S. Presidential Executive Order 13141 commits the United States to a careful assessment and consideration of the environmental impacts of trade agreements. The most direct mechanism through which trade liberalization would affect environmental quality in the U.S. is through the composition of industries. Freer trade means greater specialization, increasing the concentration of polluting industries in some countries and decreasing it in others. We begin by documenting the substantial shift in U.S. manufacturing toward cleaner industries from 1972 to 1994. We then use annual industry-level data on imports to the U.S. to examine whether this compositional shift can be traced to the significant trade liberalization that occurred over the same time period, and we conclude that no such connection exists. A shift toward cleaner industries has also occurred among U.S. imports, and we find no evidence that pollution-intensive industries have been disproportionately affected by the tariff changes.


2018 ◽  
Vol 63 (219) ◽  
pp. 7-32
Author(s):  
Sanjay Mangla

The iron-steel industry in India contributes about 3% of gross domestic product and provides employment for more than half a million people. However, although steel production in India has increased at a trend growth rate of 7.83% during the post-reform period between 1991-1992 and 2012-2013, this does not necessarily indicate efficient utilization of production factors, as it can also result from a higher level of inputs. Therefore, it is important to record productivity growth and identify its determinants. This study estimates total factor productivity (from firm-level data) in the Indian iron-steel industry and examines the impact of trade liberalization (measured as decline in input tariffs, output tariffs, and effective protection rate) on productivity during the abovementioned period.


2018 ◽  
Vol 6 (5) ◽  
pp. 33-40
Author(s):  
Юлия Кузнецова ◽  
Yulia Kuznetsova ◽  
Г. Гаджиев ◽  
G. Gadzhiev ◽  
Денис Ласточкин ◽  
...  

In this paper has been presented a system model for environmental and economic activities of the regions’ road-transport complex, supplemented by a model for the impact of fuel filling stations on the state of the natural environment. Has been carried out an information and technological substantiation for the system of petrol stations’ ecological safety on balance models. The research is based on methods of system analysis, theory of differential equations and computer modeling. In the process of solution of theoretical problems and data processing were applied information technology methods based on the CurveExpert and MathCad application programs. As a result it has been established that equations for the state of the region’s road-transport complex, compiled according to the structural scheme, include equations of rates and levels, and are a system of difference equations. In general it has been revealed that the rate of pollutants emissions into the atmosphere depends not only on the number of fuel filling stations, but also on the average annual temperature.


2021 ◽  
Vol 13 (10) ◽  
pp. 5428
Author(s):  
Yingming Zhu ◽  
Yuan Li ◽  
Yi Wang ◽  
Lingfeng Li

Water and soil scarcity and pollution have become more severe problems in China in recent years. On one hand, rapid economic growth has led to increasing environmental problems. On the other hand, the environmental problems resulting from human economic activities can impose new constraints on industrial agglomeration, making economic development unsustainable. In the present study, an individual fixed-effect model was constructed based on the framework of the new economic geography and the provincial-level data of China. The model estimated its parameters with OLS in order to analyze how the mechanisms of industrial agglomeration are affected by resource security and environmental factors. In addition, this study also used Hausman statistical tests and Fisher–PP unit root tests to analyze the endogenous problems and robustness of the model, respectively. The results showed that water and soil scarcity and environmental pollution have negative effects on industrial agglomeration. The negative effects were observed to significantly increase with levels of local government competition, but did not vary with the regional market segmentation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barsa Priyadarsinee Sahoo

Purpose The purpose of this paper is to understand the patterns and incidence of child labour in India and to examine the magnitude of child labour across different social groups. It analyses the impact of the socio-economic background of the children on their participation in the labour market. Design/methodology/approach The paper primarily relies on the data collected from secondary sources. The census of India data and the National Sample Survey Organisation (NSSO) 66th round data (2009–2010) on employment and unemployment in India for the study. The dependent variable on child labour has been computed by the author for the analysis in the paper. Findings The findings of the paper suggest that poverty is not the only determinant of child labour, but gender and caste of a person is also a significant factor for child labour. The study found that children from lower-caste backgrounds in India seem to participate more in the labour market. In terms of gender, the study found that boys are more likely to engage in economic activities or paid jobs while girls are more likely to engage in household activities. Originality/value Data used in this paper has been extracted by the author from unit level data provided by NSSO. The variables used for the analysis in the presented paper has been constructed by the author and the figures provided are the result of the author’s estimation on data.


ILR Review ◽  
2001 ◽  
Vol 55 (1) ◽  
pp. 95-115 ◽  
Author(s):  
Zadia M. Feliciano

Between 1986 and 1990, the Mexican government reduced tariffs and import license coverage by more than 50%. The author, using micro-level data, analyzes the impact of trade reform on Mexican wages and employment. Industries that had greater reductions in protection levels, she finds, had a larger percentage of low-skill workers. Wage dispersion increased in both the non-tradables sector and, to a much greater degree, the tradables sector. This pattern suggests that trade reform increased wage inequality. The decline in import license coverage appears to have reduced relative wages of workers in reformed industries by 2%, but did not affect relative employment. Reductions in tariffs had no statistically significant effect on relative wages or relative employment.


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