Effects of environmental regulations on South Asian food and agricultural exports : a gravity analysis
Date
2014-01
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Publisher
ARTNeT, United Nations ESCAP
Abstract
The current study is motivated by the poor performances of South Asian countries in world trade and investigates the effects of environmental regulation on the food and agricultural trade of four South Asian nations, Bangladesh, India, Pakistan and Sri Lanka. For this study, the Gravity Model for international trade analysis was used with country- and time-specific fixed effects. Results of the coefficient estimates reveal that even though there appears to be a relationship between stringent regulations and foreign trade without these specific effects, its significance fades as soon as both the importing and exporting country-specific effects are taken into consideration.
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Synthesis Report
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Keywords
SOUTHEAST ASIA, ASIA AND THE PACIFIC, BILATERAL TRADE AGREEMENTS, ENVIRONMENTAL PERFORMANCE INDEX, TRADE BARRIERS, CLIMATE CHANGE, AGRICULTURAL TRADE, GRAVITY MODEL OF TRADE