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ERSs and Trade in Natural Resources: The Impact on Economic Growth and Poverty in LDCs

Author

Listed:
  • Panos Hatzipanayotou

    (Athens University of Economics and Business)

  • Panagiotis Konstantinou

    (AUEB)

  • Ioanna Pantelaiou
  • Anastasios Xepapadeas

Abstract

We study the impact on economic growth of LDCs of environmentally related standards (ERSs) adopted by such economies to bypass non-tariff-measures (NTMs) imposed as environmental regulatory requirements on their exports of natural resources to developed importing countries. In particular, we develop an empirical growth model that incorporates the impacts of resource abundance and of ERSs, the latter being measured by the number of ISO14001 certificates which a LDC holds, on per capita GDP growth. This specification allows to test for the existence of the 'resource curse' and for the effects of ERSs on growth through their interaction with the resource abundance measure. Our results suggest that ERSs can be growth promoting and in certain cases a factor mitigating the 'resource curse' in LDCs. Thus, compliance with ERSs combined with aid in institution formation or technology transfers can allow LDCs to enhance economic growth and alleviate poverty.

Suggested Citation

  • Panos Hatzipanayotou & Panagiotis Konstantinou & Ioanna Pantelaiou & Anastasios Xepapadeas, 2018. "ERSs and Trade in Natural Resources: The Impact on Economic Growth and Poverty in LDCs," DEOS Working Papers 1809, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:1809
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    More about this item

    Keywords

    Non-tariff measures; Environmentally related standards; Natural resource exports; Resource curse; Economic growth; Poverty;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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