Empirical Analysis of Environment and Trade Based on Region LevelData for Sustainable Development of East Asia

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Due to limited data availability, previous studies on trade and environment had to rely on nationwide pollution emissions in the empirical analysis In contrast, we constructed the world panel dataset for the pollution emission embedded in international trade for more than 150 countries including East Asia countries for the period between 1988 and 2009. We investigated the pollution haven hypothesis (PHH) which claims that the composition of exports moves away from pollution-intensive industries as a country experiences economic growth. Empirical result does not support the PHH. It is unacceptable to sacrifice economic growth for reduction of environmental pollution in East Asia. We indicated potential reductions of environmental burden using data envelopment analysis.