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Trade and the environment : an empirical analysis - the case of Malaysia.

Mahidin, Mohd Uzir Bin (2013) Trade and the environment : an empirical analysis - the case of Malaysia. PhD thesis, University of Sheffield.

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Abstract

International trade liberalization has taken place in Malaysia since the 1960s and it has significantly contributed to Malaysian socioeconomic and political stability. Much research focuses on the achievements of the Malaysian economy but not on the effects of trade liberalization on the environment. As many earlier researchers associated pollution with manufacturing factories, it is important for the impact of the trade-led expansion of this sector on the environment in the country to be measured. This study covers the period from 1985 to 2006 using national and regional industrial panel data for four-digit ISle Malaysian manufacturing sectors. During the period,· the manufacturing and external sectors were the main engines of economic growth for the country. This study investigates the effect of international trade on the environment following three routes: regional level study, industrial level study and bilateral-trades study. Perhaps this three-route investigation of tradeenvironment relationships is the first in this area of study. Our results show no single peculiarity that either fully supports or contradicts the main body of literature. Despite popular beliefs that bilateral trade with developed countries will cause environmental degradation in Malaysia, this study has proven otherwise. As shown in the literature, the effects of trade on the environment are country specific and each country will show different results according to its own circumstances. Factors of production and countries' comparative advantage in resources appear to be relevant. The evidence to support the Pollution Haven Hypothesis has not found in Malaysia. The bilateral study shows that there is no overwhelming evidence for us to conclude that bilateral exports to developed countries cause more pollution emissions than bilateral exports to developing countries and neither that Malaysia is being used as a pollution haven nor other countries are being used by Malaysia as a pollution haven.

Item Type: Thesis (PhD)
Academic Units: The University of Sheffield > Faculty of Social Sciences (Sheffield) > Economics (Sheffield)
Identification Number/EthosID: uk.bl.ethos.616983
Depositing User: EThOS Import Sheffield
Date Deposited: 09 Jan 2017 10:56
Last Modified: 09 Jan 2017 10:56
URI: http://etheses.whiterose.ac.uk/id/eprint/15020

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