International trade and renewable resources under asymmetries of resource abundance and resource management
AbstractThis 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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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 37 (2007)
Issue (Month): 4 (August)
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Web page: http://www.springerlink.com/link.asp?id=100263
International trade; Open access; Relative resource abundance; Renewable resources; Resource management regime; F10; Q20;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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