Abstract
Does the growth of non-polluting exports lead to better environmental performance? The answer depends on how these exports rest on local comparative advantages. The more exports rely on polluting inputs, the worse their environmental performance would be. In practice, it is difficult to directly measure the polluting inputs for exporting products at the local level. This study proposes an approach to measure the reliance of exports on local polluting inputs, based on the product relatedness theories and the resource-based view of firms. This approach applies the locational quotient to indicate local resource advantages. Then, it uses the co-occurrence probability to measure the product relatedness of one export to local resource advantages. Finally, it distinguishes the product relatedness to polluting resource advantages from non-polluting ones. A higher level of polluting product relatedness is expected to depress the environmental performance of exports. Using 30 sectors in 281 Chinese cities as a case, this study applies the fixed effect model and the threshold regression model to examine the effects of product relatedness on environmental performance. Empirical results support the efficiency of using product relatedness to predict the environmental performance of exports. A higher level of polluting product relatedness leads to poorer environmental performance and more adverse effects of export growth on the environment.
Similar content being viewed by others
Data availability
The datasets used and/or analysed during the current study are available from the corresponding author on reasonable request.
References
Ali S, Yusop Z, Kaliappan SR et al (2020) Dynamic common correlated effects of trade openness, FDI, and institutional performance on environmental quality: evidence from OIC countries. Environ Sci Pollut Res 27:11671–11682
Ansari MA, Khan NA (2021) Decomposing the trade-environment nexus for high income, upper and lower middle income countries: what do the composition, scale, and technique effect indicate? Ecol Indic 121:107122
Antonietti R, Cainelli G (2009) The role of spatial agglomeration in a structural model of innovation, productivity and export: a firm-level analysis. Ann Reg Sci 46:577–600
Antweiler WB, Copeland B, Taylor S (2001) Is free trade good for the environment? Am Econ Rev 91:877–908
Azhar AKM, Elliott RJR (2007) Trade and specialisation in pollution intensive industries: north-south evidence. Int Econ J 21:361–380
Bahar D, Rosenow S, Stein E et al (2019) Export take-offs and acceleration: unpacking cross-sector linkages in the evolution of comparative advantage. World Dev 117:48–60
Baker T, Nelson R (2005) Creating something out of nothing: resources construction through entrepreneurial bricolage. Adm Sci Q 50:329–366
Banerjee S (2021) Addressing the carbon emissions embodied in India’s bilateral trade with two eminent Annex-II parties: with input-output and spatial decomposition analysis. Environ Dev Sustain 23:5430–5464
Banerjee S, Hazra S, Khan MA et al (2021) Investigating India’s pollution-intensive ‘dirty’ trade specialization: analysis with ‘revealed symmetric comparative advantages’ index. Environ Sci Pollut Res 28:30153–30167
Barney J (1991) Firm resources and sustained competitive advantage. J Manag 17:99–120
Barrows G, Ollivier H (2018) Clean firms or cleaner products? How product mix shapes emission intensity from manufacturing. J Environ Econ Manag 88:134–158
Batrakova S, Davies R (2012) Is there an environmental benefit to being an exporter? Evidence from firm level data. Rev World Econ 148:449–474
Cherniwchan J, Copeland BR, Taylor MS (2017) Trade and the environment: new methods, measurements, and results. Ann Rev Econ 9:59–85
Chuai X, Lu Q, Huang X et al (2021) China’s construction industry-linked economy-resources-environment flow in international trade. J Clean Prod 278:123990
Cole MA, Elliott RJR (2003) Determining the trade-environment composition effect: the role of capital, labor and environmental regulations. J Environ Econ Manag 46:363–383
Cole MA, Elliott RJR, Shimamoto K (2006) Globalisation, firm-level characteristics and environmental management: a study of Japan. Ecol Econ 59:312–323
Costantini V, Mazzanti M, Montini A (2013) Environmental performance, innovation and spillovers. Evidence from a regional NAMEA. Ecol Econ 89:101–114
De Marchi V, Di Maria E, Micelli S (2013) Environmental strategies, upgrading and competitive advantage in global value chains. Bus Strateg Environ 22:62–72
Essletzbichler J (2015) Relatedness, industrial branching and technological cohesion in US metropolitan areas. Reg Stud 49:752–766
Farole T (2013) The internal geography of trade: lagging regions and global markets. World Bank Publications, Washington, DC
Farole T, Winkler D (2013) Firm location and the determinants of exporting in low- and middle-income countries. J Econ Geogr 14:395–420
Galbreath J, Chang C-Y, Tisch D (2021) Are exporting firms linked to cleaner production? A study of eco-innovation in Taiwan. J Clean Prod 303:127029
Galdeano-Gómez E (2010) Exporting and environmental performance: a firm-level productivity analysis. World Econ 33:60–88
Gray WB, Shadbegian RJ (2007) The environmental performance of polluting plants: a spatial analysis. J Reg Sci 47:63–84
Guerrieri P, Iammarino S (2007) Dynamics of export specialisation in the regions of the Italian Mezzogiorno: persistence and change. Reg Stud 41:933–948
Guo Q, He C (2017) Production space and regional industrial evolution in China. GeoJournal 82:379–396
Hausmann R, Hidalgo CA (2011) The network structure of economic output. J Econ Growth 16:309–342
Hausmann R, Hwang J, Rodrik D (2007) What you export matters. J Econ Growth 12:1–25
Hausmann R, Klinger B (2006) Structural transformation and patterns of comparative advantage in the product space. Harvard Kennedy School of Government. CID Working Paper, No. 128
He J (2010) What is the role of openness for China’s aggregate industrial SO2 emission? A structural analysis based on the divisia decomposition method. Ecol Econ 69:868–886
Hidalgo C, Klinger B, Barabasi AL et al (2007) The product space conditions the development of nations. Science 317:482–487
İpek İ (2018) The resource-based view within the export context: an integrative review of empirical studies. J Glob Mark 31:157–179
Kahn SAR, Yu Z, Belhadi A et al (2020) Investigating the effects of renewable energy on international trade and environmental quality. J Environ Manag 272:111089
Koenig P, Mayneris F, Poncet S (2010) Local export spillovers in France. Eur Econ Rev 54:622–641
Krammer SMS, Strange R, Lashitew A (2018) The export performance of emerging economy firms: the influence of firm capabilities and institutional environments. Int Bus Rev 27:218–230
Kreickemeier U, Richter PM (2014) Trade and the environment: the role of firm heterogeneity. Rev Int Econ 22:209–225
Landesmann MA, Stollinger R (2019) Structural change, trade and global production networks: an ‘appropriate industrial policy’ for peripheral and catching-up economies. Struct Chang Econ Dyn 48:7–23
Liu Y, Ji Y, Shao S et al (2017) Scale of production, agglomeration and agricultural pollutant treatment: evidence from a survey in China. Ecol Econ 140:30–45
Liu D, Liu J, Wang S et al (2019) Contribution of international photovoltaic trade to global greenhouse gas emission reduction: the example of China. Resour Conserv Recycl 143:114–118
Mao X, He C (2017) Export upgrading and environmental performance: evidence from China. Geoforum 86:150–159
Mao X, He C (2019a) Product relatedness and export specialisation in China’s regions: a perspective of global-local interactions. Camb J Reg Econ Soc 12:105–126
Mao X, He C (2019b) Export expansion and regional diversification: learning from the changing geography of China’s exports. Prof Geogr 71:692–702
Mao X, Luan X, Huang X (2020) How does inter-sectoral linkage affect the environmental performance of a transitioning region: evidence from the Yangtze River Economic Belt, China. Resour Environ Sustain 1:100002
Miller RE, Blair P (2009) Input-output analysis: foundations and extensions, 2nd edn. Cambridge University Press, UK
Neffke F, Henning M (2013) Skill relatedness and firm diversification. Strateg Manag J 34:297–316
Neffke F, Hartog M, Boschma R et al (2018) Agents of structural change: the role of firms and entrepreneurs in regional diversification. Econ Geogr 94:23–48
Poncet S, de Waldermar FS (2015) Product relatedness and firm exports in China. World Bank Econ Rev 29:579–605
Richter PM, Schiersch A (2017) CO2 emission intensity and exporting: evidence from firm-level data. Eur Econ Rev 98:373–391
Van der Vooren A, Alkemade F, Hekkert MP (2013) Environmental performance and firm strategies in the Dutch automotive sector. Transp Res Part A 54:111–126
Whittle A, Kogler DF (2020) Related to what? Reviewing the literature on technological relatedness: where we are now and where can we go? Pap Reg Sci 99:97–113
Xi X, Zhou J, Gao X et al (2020) Impact of the global mineral trade structure on national economies based on complex network and panel quantile regression analyses. Resour Conserv Recycl 154:104637
Funding
This study is funded by the National Natural Science Foundation of China (Grant No. 41731278 and 41801104.)
Author information
Authors and Affiliations
Contributions
Mao Xiyan contributes to the full process of this research and the writing of this manuscript.
Corresponding author
Ethics declarations
Ethics approval and consent to participate
Not applicable.
Consent for publication
Not applicable.
Competing interests
The authors declare no competing interests.
Additional information
Responsible Editor: Philippe Garrigues
Publisher's note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Mao, X. Place-specific product relatedness and the environmental performance of non-polluting exports in China. Environ Sci Pollut Res 29, 24863–24877 (2022). https://doi.org/10.1007/s11356-021-17656-3
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-021-17656-3