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International trade and renewable resources under asymmetries of resource abundance and resource management

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Author Info

  • Naoto Jinji

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Abstract

This paper examines the interaction between relative resource abundance and resource management regimes in determining trade patterns and gains from trade in a two-country model with a renewable resource. A model developed by Brander and Taylor [Brander JA, Taylor MS (1997b) Resour Energy Econ 19:267–297] is extended. It is shown that relative resource abundance determines trade patterns if resource abundance is similar in both countries and the relative demand for the resource good is moderate, or if resource abundance is sufficiently different and the relative demand is not so high. Otherwise, a difference in resource management regimes determines trade patterns. Even under an open-access regime, the resource-scarce country gains from trade unless resource abundance is similar and the relative demand is low. Copyright Springer Science+Business Media, Inc. 2007

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File URL: http://hdl.handle.net/10.1007/s10640-007-9080-0
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 37 (2007)
Issue (Month): 4 (August)
Pages: 621-642

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Handle: RePEc:kap:enreec:v:37:y:2007:i:4:p:621-642

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: International trade; Open access; Relative resource abundance; Renewable resources; Resource management regime; F10; Q20;

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References

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  1. Hotte, Louis & Long, Ngo Van & Tian, Huilan, 2000. "International trade with endogenous enforcement of property rights," Journal of Development Economics, Elsevier, vol. 62(1), pages 25-54, June.
  2. Uusivuori, Jussi & Uusivuori, J., 2002. "Comparative advantage and forest endowment in forest products trade: evidence from panel data of OECD-countries," Journal of Forest Economics, Elsevier, vol. 8(1), pages 53-75.
  3. Ali Emami & Richard S. Johnston, 2000. "Unilateral Resource Management in a Two-Country General Equilibrium Model of Trade in a Renewable Fishery Resource," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 161-172.
  4. Chichilnisky, Graciela, 1993. "North-South trade and the dynamics of renewable resources," Structural Change and Economic Dynamics, Elsevier, vol. 4(2), pages 219-248, December.
  5. Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April.
  6. repec:fth:coluec:644 is not listed on IDEAS
  7. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
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Citations

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Cited by:
  1. Robbert Maseland, 2009. "Trade in a world with recyclable resources," DEGIT Conference Papers c014_008, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. JINJI Naoto, 2007. "Illegal Extractions of Renewable Resources and International Trade with Costly Enforcement of Property Rights," Discussion papers 07011, Research Institute of Economy, Trade and Industry (RIETI).
  3. Yasuhiro Takarada & Weijia Dong & Takeshi Ogawa, 2011. "Shared Renewable Resource and International Trade: Technical Measures for Resource Management," ERSA conference papers ersa11p449, European Regional Science Association.
  4. Kenji Kondo, 2013. "Renewable Resources, Environmental Pollution, and International Migration," ERSA conference papers ersa13p33, European Regional Science Association.
  5. TAKARADA Yasuhiro, 2010. "Shared Renewable Resource and International Trade: Technical measures for fisheries management," Discussion papers 10035, Research Institute of Economy, Trade and Industry (RIETI).
  6. Akihiho Yanase, 2013. "Free trade may save a renewable resource from exhaustion," Economics Bulletin, AccessEcon, vol. 33(1), pages 226-233.
  7. TAKARADA Yasuhiro, 2009. "Transboundary Renewable Resource and International Trade," Discussion papers 09041, Research Institute of Economy, Trade and Industry (RIETI).
  8. Yasuhiro Takarada & Takeshi Ogawa & Weijia Dong, 2012. "International Trade and Management of Shared Renewable Resource," ERSA conference papers ersa12p72, European Regional Science Association.

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