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Has trade liberalization created pollution havens in Latin America?

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  • Jenkins, Rhys Owen

Abstract

This paper asks whether the recent trade liberalization in Argentina, Brazil and Mexico has led to increased transfer of polluting activities to Latin America. Using a factor content of trade approach, it shows that prior to liberalization, all three countries specialized in relatively pollution-intensive manufactures. Following liberalization, Argentina and Brazil have increased their specialization in such industries, while Mexico has moved in the opposite direction. It is suggested that these differences are a result of the structure of protection in the pre-liberalization period and the increased stringency of environmental enforcement in Mexico in the 1990s.

Suggested Citation

  • Jenkins, Rhys Owen, 2003. "Has trade liberalization created pollution havens in Latin America?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    • Handle: RePEc:ecr:col070:10954
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    References listed on IDEAS

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