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Do Regional Trading Arrangements Harm the Environment?. An Analysis of 162 Countries in 1990

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Author Info
Ghosh, S.
Yamarik, S.

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Abstract

n this paper, we investigate the impact of regional trading arrangements (RTAs) on the environment. We propose an empirical model where RTAs, trade, growth and environmental quality are interrelated. As a result, an RTA in our model can impact the environment either directly or indirectly via trade and income. We find that membership in an RTA reduces the amount of environmental damage by increasing the volume of trade and raising per capita income. We do not, however, find that RTAs directly impact the environment. Taken together, our results suggest that the recent surge of regional trading arrangements will not increase the amount of pollution, but in fact may help the environment.

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Publisher Info
Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 6 (2006)
Issue (Month): 2 ()
Pages:
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Handle: RePEc:eaa:aeinde:v:6:y:2006:i:2_2

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Related research
Keywords: international trade; regional trading arrangements; environment; pollution;

Find related papers by JEL classification:
F15 - International Economics - - Trade - - - Economic Integration
F18 - International Economics - - Trade - - - Trade and Environment
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting

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    Other versions:
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  6. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December. [Downloadable!] (restricted)
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  7. Jeffrey A. Frankel & David Romer, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June. [Downloadable!] (restricted)
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  12. Ben-David, D., 1995. "Trade and Convergence Among Countries," Papers 35-95, Tel Aviv.
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  13. List, John A. & Gallet, Craig A., 1999. "The environmental Kuznets curve: does one size fit all?," Ecological Economics, Elsevier, vol. 31(3), pages 409-423, December. [Downloadable!] (restricted)
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  15. Susmita Dasgupta et al., 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter. [Downloadable!] (restricted)
  16. Markusen, James R., 1975. "International externalities and optimal tax structures," Journal of International Economics, Elsevier, vol. 5(1), pages 15-29, February. [Downloadable!] (restricted)
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  18. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May. [Downloadable!] (restricted)
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