IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v12y2008i4p728-736.html
   My bibliography  Save this article

Environmental Protection and Trade Liberalization in a Small Open Dual Economy

Author

Listed:
  • Ichiroh Daitoh

Abstract

The author investigates the conditions under which environmental protection and trade liberalization might improve urban unemployment and welfare in a small open Harris–Todaro model with polluting urban manufacturing. While a tariff reduction decreases manufacturing employment, a rise in the pollution tax rate may increase it when a dirty input is complementary to capital. Environmental protection and trade liberalization are consistent in reducing the level of urban unemployment because they lower it under the same condition. They are consistent in increasing GDP if a rise in the pollution tax rate decreases manufacturing employment. Otherwise, trade liberalization will mitigate a decrease in GDP because of environmental protection if the degree of urbanization is low and if rural technology exhibits weak diminishing returns to labor. This GDP effect plays a central role in welfare improvement.

Suggested Citation

  • Ichiroh Daitoh, 2008. "Environmental Protection and Trade Liberalization in a Small Open Dual Economy," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 728-736, November.
    • Handle: RePEc:bla:rdevec:v:12:y:2008:i:4:p:728-736
    DOI: 10.1111/j.1467-9361.2008.00455.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9361.2008.00455.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9361.2008.00455.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 2002. "Trade and the Environment in General Equilibrium: Evidence from Developing Economies," Staff General Research Papers Archive 4090, Iowa State University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kuo†Hsing Kuo & Cheng†Te Lee & Shang†Fen Wu, 2018. "Environmental Policy And Labour Market Imperfection," Bulletin of Economic Research, Wiley Blackwell, vol. 70(2), pages 175-184, April.
    2. Kuo‐Hsing Kuo & Shang‐Fen Wu & Cheng‐Te Lee, 2022. "The impact of environmental policy on wage inequality," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(4), pages 472-485, December.
    3. Daitoh, Ichiroh & Tarui, Nori, 2022. "Open access renewable resources, urban unemployment, and the resolution of dual institutional failures," Environment and Development Economics, Cambridge University Press, vol. 27(4), pages 316-332, August.
    4. Li, Xiaochun & Xu, Yuanting & Wang, Dianshuang, 2014. "Environment and labor movement of skilled labor and unskilled labor between sectors," Economic Modelling, Elsevier, vol. 38(C), pages 367-371.
    5. Sheng-Huei Ko & Kuo-Hsing Kuo & Cheng-Te Lee & Chen Fang, 2017. "Environmental Tax And Return Urban–Rural Migration," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 447-458, June.
    6. Dianshuang Wang, 2019. "Manufacturing and agricultural pollution, private mitigation and wage inequality in the presence of pollution externalities," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(2), pages 51-58.
    7. Yunyun Wu & Xiaochun Li, 2021. "International factor mobility and environment in a dual agricultural economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 75-89, February.
    8. Ichiroh Daitoh & Nori Tarui, 2016. "Open-access Renewable Resources and Urban Unemployment: Dual Institutional Failures in a Small Open Economy," Keio-IES Discussion Paper Series 2016-009, Institute for Economics Studies, Keio University.
    9. Makoto Tawada & Shuqin Sun, 2010. "Urban Pollution, Unemployment and National Welfare in a Dualistic Economy," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 311-322, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    2. Dessus Sebastien & Ghaleb Joey R, 2008. "Trade and Competition Policies for Growth in Lebanon: A General Equilibrium Analysis," Review of Middle East Economics and Finance, De Gruyter, vol. 4(1), pages 59-80, January.
    3. Kuo†Hsing Kuo & Cheng†Te Lee & Shang†Fen Wu, 2018. "Environmental Policy And Labour Market Imperfection," Bulletin of Economic Research, Wiley Blackwell, vol. 70(2), pages 175-184, April.
    4. Coxhead, Ian & Wattanakuljarus, Anan & Nguyen, Chan V., 2013. "Are Carbon Taxes Good for the Poor? A General Equilibrium Analysis for Vietnam," World Development, Elsevier, vol. 51(C), pages 119-131.
    5. Anderson, Kym, 2004. "Setting the Trade Policy Agenda: What Roles for Economists?," Working Papers 14574, International Agricultural Trade Research Consortium.
    6. Tu, Anh Thuy & Beghin, John & Gozlan, Estelle, 2008. "Tariff escalation and invasive species damages," Ecological Economics, Elsevier, vol. 67(4), pages 619-629, November.
    7. Al-Amin, Abul Quasem & Abdul Hamid, Jaafar & Chamhuri, Siwar, 2008. "Macroeconomic effects of carbon dioxide emission reduction: a computable general equilibrium analysis for Malaysia," MPRA Paper 8667, University Library of Munich, Germany.
    8. Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
    9. Coxhead, Ian & Chan, Nguyen Van, 2011. "Vietnam's New Environmental Tax Law: What Will It Cost? Who Will Pay?," Staff Paper Series 561, University of Wisconsin, Agricultural and Applied Economics.
    10. Partha Sen, 2008. "Fdeveloping Economies And The Environment - The Role Of Trade And Capital Flows," Working papers 172, Centre for Development Economics, Delhi School of Economics.
    11. Dessus, Sebastien & Nahas, Charbel, 2008. "Migration and Education Decisions in a Dynamic General Equilibrium Framework," Policy Research Working Paper Series 4775, The World Bank.
    12. Jaafar, Abdul Hamid & Al-Amin, Abul Quasem & Siwar, Chamhuri, 2008. "A CGE Analysis of the Economic Impact of Output-Specific Carbon Tax on the Malaysian Economy," MPRA Paper 10210, University Library of Munich, Germany.
    13. Yen Nguyen & Son Le & Nam Ngo & Huyen Nguyen, 2023. "Impacts of FDI and Environmental Pollution in ASEAN Countries: The Role of Institutions," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 242-250, September.
    14. Vandeplas, Anneleen, 2011. "Multinationals or Cooperatives: Does it Matter to Farmers? - A Study of the Dairy Sector in Punjab (India)," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115545, European Association of Agricultural Economists.
    15. Kuo-Jung Lin & Sheng-Ming Hsu & Ching-Cheng Chang & Shih-Hsun Hsu, 2013. "The China syndrome? The impact of China's growth on wage inequality in East Asian economies," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 20(4), pages 385-404, December.
    16. Al-Amin, Abul Quasem & Jaafar, Abdul Hamid & Siwar, Chamhuri, 2008. "A Computable General Equilibrium Approach To Trade And Environmental Modelling In The Malaysian Economy," MPRA Paper 8772, University Library of Munich, Germany.
    17. Bart Minten & Lalaina Randrianarison & Johan Swinnen, 2007. "Spillovers from high‐value agriculture for exports on land use in developing countries: evidence from Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 265-275, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:12:y:2008:i:4:p:728-736. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.