Abstract:
The purpose of this study was to investigate how environmental stringency affects the pollution intensive
manufacturing industry exports in the world. The study further evaluated as to how exports of these polluting
industries take place when the exporting country belongs to a certain trading group. An augmented gravity model was
estimated for the exports of refined petroleum products using panel data of 1 0 0 countries, during the period 2 0 0 0 -
2004. The estimated gravity model showed that the environmental stringency influenced negatively for the refined
petroleum product exports, during the period and also showed that these exports are high for the countries belonging
to some of the trading groups considered.
