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Trap of Race to the Bottom? Evidence from Pollution Intensive Products Trade in India and China

Author

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  • Malini L. Tantri

    (Centre for Economic Studies and Policy, Institute for Social and Economic Change (ISEC), Bengaluru, Karnataka, India. malini@isec.ac.in)

  • Varadurga Bhat

    (The Department of Economics, CHRIST University, Bengaluru, Karnataka, India. varadurga.bhat@gmail.com)

Abstract

This article compares China and India, the two biggest emerging market economies in the world, with respect to their trade in pollution-intensive industries and tries to discuss the policy environment supporting such growth. The analysis is carried out for 13 categories of pollution-intensive products based on the Standard International Trade Classification Revision 3 classification. Our analysis reveals significant growth in trade in these products in both countries, with a higher intra-industry trade and a significant correlation with environmental stringency. Between the two, India seems to be enjoying a better comparative advantage. Findings suggest a need for adopting cleaner production processes and a cautious approach towards industrial promotion.

Suggested Citation

  • Malini L. Tantri & Varadurga Bhat, 2023. "Trap of Race to the Bottom? Evidence from Pollution Intensive Products Trade in India and China," China Report, , vol. 59(2), pages 154-171, May.
    • Handle: RePEc:sae:chnrpt:v:59:y:2023:i:2:p:154-171
    DOI: 10.1177/00094455231181522
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    References listed on IDEAS

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