||Product-Related Environmental Regulation, Innovation, and Competitiveness : Empirical Evidence from Malaysian and Vietnamese Firms
Otsuki, TsunehiroYang, Qizhong
37 , 2017-11-10 , Osaka School of International Public Policy
This study examined the impact of two PRERs released by the EU — RoHS and REACH — on Malaysian and Vietnamese firms’compliance. The analysis considers productivity as a realization of innovations and examines the R&D enhancement effect of PRERs. The effect of PRERs on productivity is also broken down into direct and indirect effects through R&D enhancement. The result shows that the response to REACH can create incentives to advance R&D, and productivity can increase through both direct and indirect channels. No relationship between the response to RoHS and R&D expenditure is found. Further analysis shows that firms comply with RoHS and REACH in different ways, but just the ability to continue exporting to the EU motivates compliance.