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has been cited by the following article:

• TITLE: Environmental Standards and Trade Volume

  AUTHORS: Nicholas Mangee, Bruce Elmslie

  KEYWORDS: Environmental Standards, Trade Volume, Gravity Model, Comparative Advantage

  JOURNAL NAME: Modern Economy, Vol.1 No.2, August 27, 2010

  ABSTRACT: This paper presents a theoretical and empirical analysis of the effects of environmental regulation on bilateral trade volume. We use a gravity model of trade flows and find weak evidence that differences in regulation are a source of comparative advantage. We also find evidence against the racetothebottom hypothesis in that increases in standards in both high and low standard countries increase bilateral trade volume. We use 1999 data on GDP, population, and environmental stringency for 39 countries.