The Effects of Korean Domestic Environmental Regulations on Trade Performance: Evidence from Korean Manufacturing Industries

Jin Won Lee (이진원); LEE YOUNG HWAN (이영환)

doi:10.22954/ksrs.2022.31.1.006

The Effects of Korean Domestic Environmental Regulations on Trade Performance: Evidence from Korean Manufacturing Industries

Journal of Regulation Studies
2022, 31(1), pp.135-163
DOI : 10.22954/ksrs.2022.31.1.006
Publisher : 한국규제학회
Research Area : Social Science > Public Administration
Received : April 14, 2022
Accepted : June 24, 2022
Published : June 30, 2022

Jin Won Lee ¹, LEE YOUNG HWAN ²

¹국무조정실
²원광보건대학교

Accredited

ABSTRACT

This study analyzes the relationship between Korea’s environmental stringency and trade performance. According to the pollution haven hypothesis, environmental stringency levies additional cost on firm and burden to economic activity. While, according to Porter’s theory, well designed environmental policies might actually enhance productivity and lead to export. Using panel data from 2006 to 2014, panal dynamic model and difference-GMM estimation provides the results that environmental stringency has a negative impact on trade performance. This results potentially reflect that the Korean environmental regulations have focused on compulsory the command & control system.

KEYWORDS

Environmental regulation, Trade performance, Panel dynamic model, General method of moment

Citation status

* References for papers published after 2023 are currently being built.

[journal] Antweiler, W. / 2001 / Is free trade good for the environment? / American Economic Review 91(4) : 877~908

[journal] Arellano, M. / 1991 / Some tests of specification for panel data : Monte Carlo evidence and an application to employment equations / Review of Economic Studies 58 : 277~298

[journal] Branson, W. H. / 1977 / Factor inputs in U.S. Trade / Journal of International Economics 7 : 111~131

[journal] Ederington, J. / 2003 / Is environmental policy a secondary trade barrier? An empirical analysis / Canadian Journal of Economics 36(1) : 137~114

[report] Grossman, G. M. / 1991 / Environmental Impacts of a North American Free Trade Agreement

[book] Kalt, J. P. / 1988 / The impact of domestic environmental regulatory policies on U.S international competitiveness / Ballinger : 221~262

[other] Kim, D. / 1997 / Environmental regulation and trade competitiveness / Korea Development Institute

[other] Kim, D. / 2002 / The relationship between environmental regulation and trade / Korea Development Institute

[other] Kim, D. / 2004 / The effect of environmental regulation on trade / Korea Development Institute

[journal] 김일중 / 2013 / Environmental Regulations and Korean Trades / 자원환경경제연구 / 한국환경경제학회 22(4) : 785~815

[report] Korean Prime Minister’s Office / 2015 / Fifteenth report for climate change

[report] Korean Prime Minister’s Office / 2016 / Twelfth report for climate change

[journal] Leamer, E. / 1980 / The Leontief Paradox, reconsidered / Journal of Political Economy 88(3) : 495~503

[journal] Lee, M. / 2007 / The effect of environmental regulations : A restricted cost function for Korean manufacturing industries / Environment and Development Economics 12 : 91~104

[journal] Lee, M. / 2011 / Measurement of market power for the environmentally regulated Korean iron and steel manufacturing industry / Resource Policy 36 : 249~254

[journal] Lee, M. / 2013 / The effects of an increase in power rate on energy demand and output price in Korean manufacturing sectors / Energy Policy 63 : 1217~1223

[journal] Levinson, A. / 2008 / Unmasking the pollution heaven effect / International Economic Review 49 : 223~254

[report] Lim, J. / 2004 / Basic Research for Preparation of the 3rd National Communication of Korea under the United Nations Framework Convention on Climate Change / Korea Energy Economics Institute

[report] Lim, J. / 2007 / Strategy for Post-2012 negotiation / Korea Energy Economics Institute

[journal] Song, W. -Y. / 2014 / Environmental regulations and the export performance of South Korea manufacturing industries: A dynamic panel approach / The Journal of International Trade & Economic Development 23(7) : 923~945

[journal] Stern, R. M. / 1981 / Determinants of the structure of U.S. foreign trade 1958-76 / Journal of International Economics 11 : 207~224

[journal] Trefler, D. / 1993 / Trade liberalization and the theory of endogenous protection : An econometric study of US import policy / Journal of Political Economy 11 : 138~160

KJCKorea
Journal Central

Journal of Regulation Studies 2023 KCI Impact Factor : 0.78

The Effects of Korean Domestic Environmental Regulations on Trade Performance: Evidence from Korean Manufacturing Industries

ABSTRACT

KEYWORDS

Citation status

* References for papers published after 2023 are currently being built.

Journal of Regulation Studies 2023 KCI Impact Factor : 0.78

The Effects of Korean Domestic Environmental Regulations on Trade Performance: Evidence from Korean Manufacturing Industries

ABSTRACT

KEYWORDS

Statistics

Tools

Issue List

Citation status

KCI Citation Counts (0)

REFERENCES (22) * References for papers published after 2023 are currently being built.

Search PDF

Citation

* References for papers published after 2023 are currently being built.