Trade Partnerships and Environmental Performance in Developing Countries

Abstract

A large scholarship surrounds the relationship between trade and the environment, with much of it centering on whether trade produces a race to the bottom or a race to the top in the environments of developing countries. While the effects of trade on key pollutants and on specific environmental policies have been widely attended to, scholars have not yet considered if and how trade impacts developing nations’ environmental performance, broadly speaking. This is a critical matter, as the effects of trade on the environment can only be appreciated fully through holistic assessment of the environment and environmental protection. The study that follows helps to fill this void through analysis of an all-inclusive measure of environmental performance that encompasses indicators of policy and practice. Findings demonstrate that exporting to the United States and the European Union improves environmental performance in developing countries; however, no such effect accompanies trade with other countries.