We aim to study whether lax environmental regulations induce comparative advantages, causing the least-regulated countries to specialize in polluting industries. The study is based on Trefler and Zhu’s (2005) definition of the factor content of trade. For the econometrical analysis, we use a...

We study whether lax environmental regulations induce comparative advantages, causing the  least-regulated countries to specialize in polluting industries. We seek to improve three areas in the empirical literature based on the Heckscher-Ohlin-Vanek’s factor content of trade, more...

We aim to study whether lax environmental regulations induce comparative advantages, causing the least-regulated countries to specialize in polluting industries. The study is based on Trefler and Zhu’s (2005) definition of the factor content of trade. For the econometrical analysis, we use a...