Trade-induced technological change: Analyzing economic and environmental outcomes |
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Authors: | Shunsuke Managi Surender Kumar |
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Institution: | 1. Faculty of Business Administration, Yokohama National University, 79-4, Tokiwadai, Hodogaya-ku, Yokohama 240-8501 Japan;2. Institute for Global Environmental Strategies, 2108-11 Kamiyamaguchi, Hayama, Kanagawa 240-0115 Japan;3. Department of Policy Studies, TERI University, 10 Institutional Area, Vasant Kunj, New Delhi 110070, India |
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Abstract: | We analyze how changes in trade openness are related to induced technological innovations that are not only GDP increasing but also pollution saving. Our model includes by-products of carbon dioxide and sulfur dioxide emissions. We estimate a directional distance function for 76 countries over the period 1963–2000 to measure exogenous and trade-induced technological change. On average, we find substantial trade-induced technological progress, and its magnitude is about one third of the overall technological change. The trade-induced technological changes, however, are GDP reducing and pollution increasing. Empirically, we find that increased trade openness correlates to increased pollution. |
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Keywords: | O11 O57 F18 Q55 |
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