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Trade and the Environment in Central America

Cienfuegos Hernandez, Karla Vanessa LU (2013) EKHR92 20131
Department of Economic History
Abstract
During the last decades, the policies of trade liberalization and export promotion have been crucial to Central America's economic growth. Because of the linkages between trade and the environment, this dramatic shift in Central America’s trade patterns could have important implications for the environment and use of natural resources. This paper looks at the dynamics between trade and the environment in the Central American region during the decade of the 1990s, focusing on export flows with its main partner, the United States. By making use of relevant econometric techniques, such as instrumental variables and fixed effect estimation, in order to address problems caused by the endogeneity of environmental policy and unobserved country... (More)
During the last decades, the policies of trade liberalization and export promotion have been crucial to Central America's economic growth. Because of the linkages between trade and the environment, this dramatic shift in Central America’s trade patterns could have important implications for the environment and use of natural resources. This paper looks at the dynamics between trade and the environment in the Central American region during the decade of the 1990s, focusing on export flows with its main partner, the United States. By making use of relevant econometric techniques, such as instrumental variables and fixed effect estimation, in order to address problems caused by the endogeneity of environmental policy and unobserved country characteristics, we found evidence supporting the existence of a pollution haven effect. These results show that after controlling for other factors that influence trade flows more stringent environmental regulation acts as a deterrent to dirty good production. (Less)
Please use this url to cite or link to this publication:
author
Cienfuegos Hernandez, Karla Vanessa LU
supervisor
organization
course
EKHR92 20131
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Pollution Haven Effect, Environment, Central America
language
English
id
3865205
date added to LUP
2013-06-28 15:49:39
date last changed
2013-06-28 15:49:39
@misc{3865205,
  abstract     = {During the last decades, the policies of trade liberalization and export promotion have been crucial to Central America's economic growth. Because of the linkages between trade and the environment, this dramatic shift in Central America’s trade patterns could have important implications for the environment and use of natural resources. This paper looks at the dynamics between trade and the environment in the Central American region during the decade of the 1990s, focusing on export flows with its main partner, the United States. By making use of relevant econometric techniques, such as instrumental variables and fixed effect estimation, in order to address problems caused by the endogeneity of environmental policy and unobserved country characteristics, we found evidence supporting the existence of a pollution haven effect. These results show that after controlling for other factors that influence trade flows more stringent environmental regulation acts as a deterrent to dirty good production.},
  author       = {Cienfuegos Hernandez, Karla Vanessa},
  keyword      = {Pollution Haven Effect,Environment,Central America},
  language     = {eng},
  note         = {Student Paper},
  title        = {Trade and the Environment in Central America},
  year         = {2013},
}