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2017 | OriginalPaper | Buchkapitel

1. Introduction

verfasst von : Hansa Jain

Erschienen in: Trade Liberalisation, Economic Growth and Environmental Externalities

Verlag: Springer Singapore

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Abstract

The liberal trade policies that involved reduction in trade barriers and facilitated inflows of foreign direct investment, capital and technologies restructured the Indian manufacturing industries. Apart from the difference in factor endowments, the comparative advantage nowadays is seen in terms of environmental regulatory gaps between the trading partners. This raises the concern whether trade-induced production structure of Indian manufacturing industries is generating environmental externality. This study is endeavoured to explore the relationship between trade liberalization, economic growth and environmental externalities by taking the case of Indian manufacturing industries. This chapter gives an overview of the subject, statement of the problem, objectives and scope of the study.

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Fußnoten
1
Competitiveness implies relative efficiency in producing tradable goods (Mondal and Pant 2014).
 
2
According to Mani and Wheeler (1997), environmental pricing is the significant determinant of comparative advantage.
 
3
See Low and Yates (1992), Fredriksson (1999) and Broner et al. (2012).
 
4
Opportunity cost is measured by the marginal rate of transformation between one good and another, as given by the slope of the production possibility curve; that is, by how much one good has to be sacrificed in order to produce another.
 
5
Static gains from trade stem from the basic fact that countries are differently endowed with resources (natural and acquired), and because of this the opportunity cost of producing product varies from country to country. In other words, the static gains from trade are measured by the resource gains to be obtained by exporting to obtain imports more cheaply in terms of resources given up, compared to producing the goods oneself. Or, to put it another way, the static gains from trade are measured by the excess cost of import substitution, by what is saved by not producing the imported good domestically. The resource gains can then be used in a variety of ways including increased domestic consumption of both goods. See Acharyya (2013) for detail.
 
6
See Helpman and Krugman (1985) for modern trade theory and Grossman and Helpman (1991) for ‘New’ growth theory.
 
7
Neoclassical supply-side model (Thirlwal 2000; Feder 1983).
 
8
See Acharyya (2013), Copeland and Taylor (1994) and Hettige et al. (2000).
 
9
See Chakraborty (2012).
 
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Metadaten
Titel
Introduction
verfasst von
Hansa Jain
Copyright-Jahr
2017
Verlag
Springer Singapore
DOI
https://doi.org/10.1007/978-981-10-2887-8_1