Effects of Chemical Safety Standards on Production Cost in Malaysia and Vietnam

Autor: Keiichiro Honda, Tsunehiro Otsuki
Rok vydání: 2017
Předmět:
Zdroj: Regulations and International Trade ISBN: 9783319550404
DOI: 10.1007/978-3-319-55041-1_9
Popis: This chapter examines the impact of EU restriction on hazardous substances (RoHS) and REACH regulations on the production costs of firms in Malaysia and Vietnam using two firm-level survey data. The primary purpose of chemical safety regulations is to ensure consumer safety, but they may impose costs on producers by requiring greater effort to meet their requirements. This paper uses the firm-level data set to examine the effect of technical regulations on firms’ production costs. It finds that in addition to the initial setup costs for compliance, EU RoHS and REACH implementation causes firms to incur additional non-trivial variable production costs by requiring additional labor and capital expenditures of around 2.2% and 1.5% of the variable costs, respectively. This suggests that these regulations may reduce the profits of exporting firms.
Databáze: OpenAIRE