AJOU Central Library Repository: The determinants of trade volume of recycle industries between countries

The determinants of trade volume of recycle industries between countries

Alternative Abstract: Recycling is an important issue for sustainable development and the new entrepreneurs or investors would need knowledge regarding key factors of trade volume of recyclables to identify the specific opportunity and take decision efficiently. This paper analyzes how the trade volume of recycling industry is determined. To be specific, this study focuses on the relationship between trade volumes of recycles and labor cost. As recycling process is labor-intensive, recycling industry is likely to be located in less developed countries. That is, as the labor cost of importer relative to exporter increases, the trade volume of recycles will decrease, and vice versa. This hypothesis is tested based on a gravity model in trade theory. Using the UN Comtrade data on ten countries in the Pacific Ocean, the regression analysis finds that a larger difference in the relative wage between exporter and importer is associated with a larger trade volume for waste plastics. However, the relationship is not found for waste paper or automobile. The results imply that the labor cost is indeed an important factor for recycling industry compared to other manufacturing industry but that its significance varies across different kinds of recycled products.

Appears in Collections:: Special Graduate Schools > Graduate School of International Studies > Department of International Trade > International Trade > 3. Theses(Master)

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