Environmental Kuznets Curve: An Envelope of Technological Progress

This paper develops a growth model to provide a theoretical explanation of the environmental Kuznets curve (EKC). Paper explains how EKC is shaped with economic development for a given technology. The EKC result arises in two ways – it can be observed from a single technology that matures and it can be observed as an economy develops new technologies. This second effect is represented as an envelope of Kuznets curves for technologies. This paper provides an interesting application of growth theory and of the envelope theorem. In economic development process, technology first diffuses, then become regulated and finally is phased out by another new technology. Thus, each technology may produce one EKC corresponding to a definite externality. Theoretically, a series of EKCs may exist and an envelope of them is observed in reality.Technological development, Innovation, Diffusion, Pollution sensitivity, regulation, EKC, social institution

China’s Trade in Asia and the World: Long run Relation with Short run Dynamics

This paper attempts to find the long run relation with short run dynamics of China’s trade in Asia and the world. Co-integration technique provides the economic integration of China’s export to the US and its import from Asian nations. This study observed that China is economically integrated with Asia and the world. China has double role in international trade – (i) China acts as an attractor of all inputs from Asia and (ii) China pushes the products in international market with a comparative advantage in price competition. This study also reveals that the speed of China’s import from Asia is faster than that of China’s export to the US.Economic Integration, production network, Co-integration, Asia, China, the US, Error correction, Double Engine of Growth, Export, Import, Long run, short run dynamics.

Climate Change and Development: Trade Opportunities of Climate Smart Goods and Technologies in Asia

This study focuses on trade opportunities of climate smart goods and technologies (CSGT) in Asia. Paper mainly highlights the export gaps for climate smart goods and technologies (CSGT) in Asia and identifies the trade opportunities among trade partners in intraregional and interregional. Applying the gravity model we estimate the export gap for the CSGT as the difference between the actual bilateral export flow and the mean value predicted by the model. In other words, ‘export gap’ is the difference between the actual and predicted export value. There is a scope to increase the export of climate smart goods and technologies with trading partners when the actual trade is below the predicted value ( i.e., negative value of the export gap). This gap actually provides the opportunity to raise the trade and attracting investment in CSGT sector and thereby development takes place. This paper also identifies the export gaps in CSGT for each regional member in its trade with partners within the region, EU, and North America (i.e., the US and Canada). This study contributes to the empirical literature in terms of measuring and identifying the potential trade opportunity of CGST in Asia.Climate Change, Business and Development, Bilateral trade flow, Climate Smart Goods and Technologies, Gravity model, Export gap, Potential Trade, China, India, Asia

Competition versus efficiency

It is usually believed that higher competition, implying more active firms, benefits consumers and encourages the antitrust authorities to foster competition. We show that this view can be misleading, and higher competition may actually make the consumers worse-off. We suggest that the antitrust authorities should be interested in reducing inefficiency instead of increasing competition through more firms.Competition; Consumer welfare; Cost asymmetry; Tax

International Outsourcing, Tax and Patent Protection

We show that, in the case of a vertical technology transfer, if there is imperfect knowledge spillover under a weak patent protection, the strong patent protection in the developing country increases the profit of the developed-country firm if there is a uniform tax rate in the developing country. If there is either perfect knowledge spillover under weak patent protection or the developing country charges discriminatory tax rates, the profits of the developed-country firms are the same under weak and strong patent protections in the developing countries.International outsourcing, Knowledge spillover, Patent protection, Tax