Abstract
International trade and global environmental protection have become the objects of intense debate. One aspect of this debate concerns the effects of environmental regulations on international competitiveness. In this article, the impact of environmental regulations on grain trade patterns is examined using Heckscher-Ohlin-Vanek (HOV) equations in which net trade is explained by relative factor endowments. The HOV equations are extended to include proxies for environmental regulations which are tested for significance. The results indicate that grain trade patterns are well explained by national factor endowments. Environmental regulations appear to have little impact on comparative advantage in grains. © 1997 John Wiley & Sons, Inc.
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