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Trade liberalization and the environment in Vietnam

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  • Mani, Muthukumara
  • Jha, Shreyasi

Abstract

Vietnam's integration with the international economy has increased significantly over the past decade, aided by substantial liberalization of trade, and appears set to increase further as trade-expanding measures take full effect. This dramatic shift in Vietnam's trading patterns has important implications for the environment and use of natural resources. This paper offers a systematic analysis of the trading and investment patterns to give a broader understanding of the environmental implications of greater openness of the economy during the past decade. The results suggest increasing manufacturing and export activity in water and toxic pollution-intensive sectors compared with the less pollution-intensive sectors. The story is, on the surface, consistent with the changing composition of Vietnamese production and exports away from traditional sectors and toward pollution-intensive manufacturing (especially leather and textiles). The paper also highlights the need to consider strengthening environmental policies while further trade liberalization is being contemplated through Vietnam's joining of the World Trade Organization.

Suggested Citation

  • Mani, Muthukumara & Jha, Shreyasi, 2006. "Trade liberalization and the environment in Vietnam," Policy Research Working Paper Series 3879, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3879
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    References listed on IDEAS

    as
    1. Auffret, Phillipe, 2003. "Trade reform in Vietnam : opportunities with emerging challenges," Policy Research Working Paper Series 3076, The World Bank.
    2. James A. Tobey, 1990. "The Effects of Domestic Environmental Policies on Patterns of World Trade: An Empirical Test," Kyklos, Wiley Blackwell, vol. 43(2), pages 191-209, May.
    3. Ederington Josh & Levinson Arik & Minier Jenny, 2004. "Trade Liberalization and Pollution Havens," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-24, November.
    4. Muthukumara Mani, 1996. "Environmental tariffs on polluting imports," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(4), pages 391-411, June.
    5. Prema‐chandra Athukorala, 2006. "Trade Policy Reforms and the Structure of Protection in Vietnam," The World Economy, Wiley Blackwell, vol. 29(2), pages 161-187, February.
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    Cited by:

    1. Shahbaz, Muhammad & Khraief, Naceur & Uddin, Gazi Salah & Ozturk, Ilhan, 2014. "Environmental Kuznets curve in an open economy: A bounds testing and causality analysis for Tunisia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 325-336.
    2. Cunha, Barbara & Mani, Muthukumara, 2011. "DR-CAFTA and the environment," Policy Research Working Paper Series 5826, The World Bank.
    3. World Bank, 2005. "Vietnam Business : Vietnam Development Report 2006," World Bank Publications - Reports 8314, The World Bank Group.
    4. Scott R. Sanders & David L. Brown, 2014. "Escaping Poverty in Post‐Socialist Vietnam: Does Place Matter?," Poverty & Public Policy, John Wiley & Sons, vol. 6(4), pages 332-353, December.
    5. Ulla Lehmijoki & Tapio Palokangas, 2010. "Trade, population growth, and the environment in developing countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(4), pages 1351-1370, September.
    6. Bin Ni & Hanae Tamechika & Tsunehiro Otsuki & Keiichiro Honda, 2016. "Does ISO14001 raise firms f awareness of environmental protection? |Case from Vietnam," Discussion Papers in Economics and Business 16-05, Osaka University, Graduate School of Economics.
    7. Joern Dosch, 2011. "Reconciling Trade and Environmental Protection in ASEAN-China Relations: More than Political Window Dressing?," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 30(2), pages 7-29.

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    More about this item

    Keywords

    Environmental Economics&Policies; Water and Industry; Economic Theory&Research; Free Trade; Green Issues;
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