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A Study on Environmental Compliance of Indian Leather Industry & its Far-reaching Impact on Leather Exports

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  • Chandan Roy

Abstract

Indian Leather Industry is recognized as one of the most promising foreign exchange earning sectors since early 1970s. The industry was hard hit by two consecutive foreign environment bans since 1989. Along with that, few domestic environmental regulations also resulted into closure down of a number of leather tanneries during this period. However, the government intervention and the successive compliance measures adopted by the firms ultimately helped the industry to gain momentum in its export sector. This paper analyzes the far reaching impact of these environmental regulations on export sector of Indian Leather Industry. Whether this boost in leather export marks a trade-off relation between environmental quality and volume of exports is a matter of debate, which is attempted in this paper. This paper, within the limitations of data availability regarding environmental statistics, has determined a positive relation between environmental quality and volume of leather exports and justified that instead of Pollution Haven Hypothesis, Indian Leather Industry rather confirms Porterɺs Hypothesis.

Suggested Citation

  • Chandan Roy, 2012. "A Study on Environmental Compliance of Indian Leather Industry & its Far-reaching Impact on Leather Exports," Foreign Trade Review, , vol. 47(2), pages 3-36, July.
    • Handle: RePEc:sae:fortra:v:47:y:2012:i:2:p:3-36
    DOI: 10.1177/0015732515120201
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    Cited by:

    1. Roy, Chandan Roy, 2013. "An Expository Analysis on Environmental Compliance of Indian Leather Industry," MPRA Paper 47685, University Library of Munich, Germany, revised Apr 2013.
    2. Phu Nguyen-Van & Tuyen Tiet & Quoc Tran-Nam, 2024. "Synergy in environmental compliance, innovation and export on SMEs' growth," Working Papers hal-04441426, HAL.
    3. Maiko Sakamoto & Tofayel Ahmed & Salma Begum & Hamidul Huq, 2019. "Water Pollution and the Textile Industry in Bangladesh: Flawed Corporate Practices or Restrictive Opportunities?," Sustainability, MDPI, vol. 11(7), pages 1-14, April.

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    More about this item

    Keywords

    Leather Exports; Environmental Regulations; Compliance; Pollution Haven; Porter's Hypothesis; BOD; CETP; ETP;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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