IDEAS home Printed from https://ideas.repec.org/p/jet/dpaper/dpaper453.html
   My bibliography  Save this paper

Impact on Asian firms of product-related environmental regulations through global supply chains : a study of firms in Malaysia

Author

Listed:
  • Michida, Etsuyo
  • Ueki, Yasushi
  • Nabeshima, Kaoru

Abstract

This paper sheds light on the important role played by global supply chains in the adaptation to product-related environmental regulations imposed by importing countries, with a focus on chemicals management. By utilizing a unique data collected in Penang, Malaysia, we depict the supply chain structures and how differences among firms in participation to global supply chain link to differences in chemical management. We found that firms belonging to a supply chain are in a better position to comply with these regulations because information and requirements are transmitted through global supply chains. In contrast, those firms that are neither exporters nor a part of a global supply chain lack the knowledge and information channels relevant to chemical management in a product.

Suggested Citation

  • Michida, Etsuyo & Ueki, Yasushi & Nabeshima, Kaoru, 2014. "Impact on Asian firms of product-related environmental regulations through global supply chains : a study of firms in Malaysia," IDE Discussion Papers 453, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper453
    as

    Download full text from publisher

    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37722&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2014
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. Tong, Xin & Shi, Jin & Zhou, Yu, 2012. "Greening of supply chain in developing countries: Diffusion of lead (Pb)-free soldering in ICT manufacturers in China," Ecological Economics, Elsevier, vol. 83(C), pages 174-182.
    3. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
    4. Chen, Natalie & Novy, Dennis, 2012. "On the measurement of trade costs: direct vs. indirect approaches to quantifying standards and technical regulations," World Trade Review, Cambridge University Press, vol. 11(3), pages 401-414, July.
    5. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 4, pages 63-77, World Scientific Publishing Co. Pte. Ltd..
    6. Ramungul, Nudjarin & Michida, Etsuyo & Nabeshima, Kaoru, 2013. "Impact of product-related environmental regulations / voluntary requirements on Thai firms," IDE Discussion Papers 383, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Chen, Sau Soon & Mohd, Helme bin Mohd Helan & Zanariah, Ujang & Michida, Etsuyo & Nabeshima, Kaoru, 2014. "Role of laboratories for adapting product-related environmental regulations (PRERs)," IDE Discussion Papers 452, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Ferrantino, Michael J., 2012. "Using supply chain analysis to examine the costs of non-tariff measures (NTMs) and the benefits of trade facilitation," WTO Staff Working Papers ERSD-2012-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    9. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    10. Michida, Etsuyo, 2014. "The policy impact of product-related environmental regulations in Asia," IDE Discussion Papers 451, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    11. Soeren Jeppesen & Michael W. Hansen, 2004. "Environmental upgrading of Third World enterprises through linkages to transnational corporations. Theoretical perspectives and preliminary evidence," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 261-274, July.
    12. Chi Song & Heping Zhang, 2014. "Discussion," International Statistical Review, International Statistical Institute, vol. 82(3), pages 359-361, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michida, Etsuyo & Nabeshima, Kaoru & Ueki, Yasushi, 2014. "Impact of product-related environmental regulations in Asia : descriptive statistics from a survey of firms in Vietnam," IDE Discussion Papers 466, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Ederington,Josh & Ruta,Michele, 2016. "Non-tariff measures and the world trading system," Policy Research Working Paper Series 7661, The World Bank.
    3. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    4. Barrett, Alan & Bergin, Adele & FitzGerald, John & Lambert, Derek & McCoy, Daire & Morgenroth,Edgar & Siedschlag, Iulia & Studnicka, Zuzanna, 2015. "Scoping the Possible Economic Implications of Brexit on Ireland," Research Series, Economic and Social Research Institute (ESRI), number RS48.
    5. Dennis Novy, 2013. "Gravity Redux: Measuring International Trade Costs With Panel Data," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 101-121, January.
    6. Li, Qiaomin & Scollay, Robert & Gilbert, John, 2017. "Analyzing the effects of the Regional Comprehensive Economic Partnership on FDI in a CGE framework with firm heterogeneity," Economic Modelling, Elsevier, vol. 67(C), pages 409-420.
    7. Olper, Alessandro, 2017. "The political economy of trade-related regulatory policy: environment and global value chain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3), February.
    8. Ghodsi, Mahdi, 2023. "Exploring the ‘non-tariff measures black box’: Whose regulatory NTMs on which products improve the imported quality?," International Economics, Elsevier, vol. 173(C), pages 45-67.
    9. Schmidt, Julia & Steingress, Walter, 2022. "No double standards: Quantifying the impact of standard harmonization on trade," Journal of International Economics, Elsevier, vol. 137(C).
    10. Beestermöller, Matthias & Disdier, Anne-Célia & Fontagné, Lionel, 2018. "Impact of European food safety border inspections on agri-food exports: Evidence from Chinese firms," China Economic Review, Elsevier, vol. 48(C), pages 66-82.
    11. Beverelli, Cosimo & Neumueller, Simon & Teh, Robert, 2015. "Export Diversification Effects of the WTO Trade Facilitation Agreement," World Development, Elsevier, vol. 76(C), pages 293-310.
    12. Mahdi Ghodsi, 2018. "The Impact of Chinese Technical Barriers to Trade on its Manufacturing Imports," wiiw Working Papers 146, The Vienna Institute for International Economic Studies, wiiw.
    13. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    14. Eyal RONEN, 2017. "Quantifying the trade effects of NTMs: A review of the empirical literature," Journal of Economics and Political Economy, KSP Journals, vol. 4(3), pages 263-274, September.
    15. Kan Yue, 2022. "Non‐tariff measures, product quality and import demand," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 870-900, April.
    16. repec:lic:licosd:36315 is not listed on IDEAS
    17. Thomas Orliac, 2012. "The economics of trade facilitation [L'économie de la facilitation des échanges]," SciencePo Working papers Main tel-03681980, HAL.
    18. Balistreri, Edward J. & Tarr, David G., 2020. "Comparison of deep integration in the Melitz, Krugman and Armington models: The case of The Philippines in RCEP," Economic Modelling, Elsevier, vol. 85(C), pages 255-271.
    19. Mahdi Ghodsi, 2021. "Exploring ‘Non-Tariff Measures Black Box’: Whose Regulative NTMs on Which Products Improve the Imported Quality?," wiiw Working Papers 195, The Vienna Institute for International Economic Studies, wiiw.
    20. Mahdi Ghodsi, 2020. "The impact of Chinese technical barriers to trade on its manufacturing imports when exporters are heterogeneous," Empirical Economics, Springer, vol. 59(4), pages 1667-1698, October.
    21. Yang, Yong & Mallick, Sushanta, 2014. "Explaining cross-country differences in exporting performance: The role of country-level macroeconomic environment," International Business Review, Elsevier, vol. 23(1), pages 246-259.

    More about this item

    Keywords

    Malaysia; Environmental protection; International trade; Industrial standards; Foreign investments; Global supply chain; FDI; PRERs (product-related environmental regulations); REACH; RoHS;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jet:dpaper:dpaper453. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michitaka Imamitsu (email available below). General contact details of provider: https://edirc.repec.org/data/idegvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.