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

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  • Roy, Chandan

Abstract

Indian Leather industry is recognized as one of the most promising foreign exchange earning sectors since early ’70s of the previous century. 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 in 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 analyses 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, attempted to be resolved here. 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 Porter’s Hypothesis.

Suggested Citation

  • Roy, Chandan, 2012. "A Study on Environmental Compliance of Indian Leather Industry & its Far-reaching Impact on Leather Exports," MPRA Paper 41386, University Library of Munich, Germany, revised Jun 2012.
    • Handle: RePEc:pra:mprapa:41386
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    References listed on IDEAS

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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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