Greening Regional Trade Agreements and Domestic Regulation
摘要
This paper aims at assessing whether targeted environmental provisions included in Regional Trade Agreements (RTAs) may influence the adoption of domestic regulations. Drawing on recent database about RTAs environmental provisions, we build a panel of 23 years and 142 countries and estimate their effects on the Technical Barriers to Trade (TBT) notified to the WTO by countries related to fertilizers and pesticides. Different empirical models are used, also to account for endogeneity mostly due to unobserved heterogeneity and reverse causality. We consider also endogeneity arising because TBT of one country may be influenced by those of other countries and, hence, use a spatial autoregressive model as well. Our results show that RTA provisions related to fertilizers and pesticides are effective in increasing the number of TBT on fertilizers and pesticides enacted by both developed and developing countries. Further, findings show that only for the subsample of developed countries the TBT in one country influence TBT in other countries.