PurposeTo construct an index (index of environmental sensitivity performance) to be used in a cross‐country trade model in order to analyze the effect of various degrees of environmental stringency on the trade patterns, and especially on the export performance of the countries.Design/methodology/approachThe gravity model of trade is used in order to find the effects of environmental stringency on the variation in trade flows.FindingsThe study shows that environmental stringency has an important impact on the export of the countries. The impact of the degree of environmental stringency on the exports is significantly negative suggesting an inverse relationship between export values and relative environmental sensitivity performance of the nations.Originality/valueThis study supports the argument that the environmental stringency level differential between developing and developed nations is a crucial criteria in terms of explaining shifts in the trade patterns and international specialization of the countries.
We study the roles that migration and remittances play in the human capital formation of children in Egypt. Our estimations reveal a significant association between remittances and human capital formation: the higher the probability of receipt of remittances, the higher the probability of school enrollment, and the older the age at which children enter the labor force.Although, with regard to the likelihood of school enrollment and the age of the first participation in the labor force, the family disruption effect of migration dominates the income effect of remittances, the likelihood of labor force participation decreases even in households from which both parents migrated.
The main objective of this paper is to evaluate the impact of the environmental stringency on trade and the foreign direct investments (FDI) in particular. To do so, both theoretical and empirical investigations are performed. During the empirical investigation, an index of environmental sensitivity performance (IESP) is constructed for the OECD countries. Additionally, the main determinants of the OECD countries' FDI outflows are also analysed alongside with the environmental sensitivity variable for the countries in the sample. The empirical analysis in this paper finds some evidence to suggest that environmental stringency has an important impact on the FDI outflows of the OECD countries. The impact of the degree of environmental stringency on the FDI is significantly positive implying a direct relationship between FDI outflows and relative environmental sensitivity performance of the OECD countries.
An index of environmental sensitivity performance (IESP) is constructed in order to measure and quantify the comparative environmental sensitivity of countries. The main emphasis of IESP is to obtain an overall measure of sensitiveness instead of focusing on various indicators designed for particular environmental issues. The sub-indices, however, can also be utilised for specific environmental concerns. IESP is built to analyse empirically certain economic relationships that appeared firstly in the emergence of environmental regulations in industrial nations and secondly, in the debate over recent international agreements. The main findings of the IESP seem to be consistent with the disputes emphasising the growing sensitivity of the developed nations towards the industrial pollution relative to the developing nations. With a very few exceptions, developed countries appear to be stringent in the pursuit of the industrial environmental regulations. This general trend, which is consistent with the theoretical expectations, contributes to the value of the IESP as a quantitative instrument. Furthermore, the wider range of the countries' index values can be considered as promising in terms of utilising IESP in quantitative applications.
The link between trade and the environment has aroused considerable interest both in terms of the impact of trade liberalisation on the environment, and also the impact of environmental policy on production and trade. Of key environmental concern at present is global warming and its association with greenhouse gas emissions. Agriculture is a sector of the economy that both contributes to, and will be affected by, climate change. This paper models the impact of agricultural trade liberalisation on greenhouse gas emissions from agriculture around the world, focusing particularly on the effects on New Zealand, a small economy highly dependent on agricultural trade. A partial equilibrium agricultural multicountry, multicommodity trade model is used for the analysis, extended to include physical production systems and their greenhouse gas emissions. Two simulations are performed: removal of agricultural policies in the EU and in all OECD countries. The results indicate that although producer returns in New Zealand increase, greenhouse gas emissions also increase significantly. EU producers face lower returns but also lower greenhouse gas emissions.
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