A BEJEAP Advances article.

Abstract

This paper contributes to the unresolved issue regarding the effect of economic integration on environmental policymaking. In particular, we discuss the joint impact of trade openness and political stability on environmental policymaking. Our theory predicts that the effect of trade integration on environmental policy is conditional on the degree of political stability. Trade integration affects the stringency of environmental policies due to changes in industry bribery behavior, and the effect is conditional on the degree of political stability. The empirical findings support the theory and are robust to alternative specifications. The stringency enhancing effect on environmental policy of trade integration is greater in politically stable countries.

Submitted: October 20, 2003 · Accepted: December 6, 2003 · Published: February 20, 2004

Originally published in Advances in Economic Analysis & Policy.

Recommended Citation

Fredriksson, Per G. and Mani, Muthukumara (2004) "Trade Integration and Political Turbulence: Environmental Policy Consequences," Advances in Economic Analysis & Policy: Vol. 4 : Iss. 2, Article 1.
Available at: http://www.bepress.com/bejeap/advances/vol4/iss2/art1