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Is Trade Good or Bad for the Environment? Sorting Out the Causality Author info | Abstract | Publisher info | Download info | Related research | Statistics Jeffrey A. Frankel (Kennedy School of Government, Harvard University)
Andrew K. Rose (Haas School of Business, University of California, Berkeley)
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We seek to contribute to the debate over globalization and the environment by asking: What is the effect of trade on a country's environment, for a given level of GDP? We take specific account of the endogeneity of trade, using exogenous geographic determinants of trade as instrumental variables. We find that trade tends to reduce three measures of air pollution. Statistical significance is high for concentrations of SO2 , moderate for NO2 , and lacking for particulate matter. Although results for other environmental measures are not as encouraging, there is little evidence that trade has a detrimental effect on the environment. Copyright (c) 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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Article provided by MIT Press in its journal Review of Economics and Statistics .
Volume (Year): 87 (2005)
Issue (Month): 1 (October)
Pages: 85-91
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Handle: RePEc:tpr:restat:v:87:y:2005:i:1:p:85-91Contact details of provider: Web page: http://mitpress.mit.edu/journals/
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Paper Frankel, Jeffrey & Rose, Andrew K., 2003.
"Is Trade Good or Bad for the Environment? Sorting Out the Causality ,"
Working Paper Series
rwp03-038, Harvard University, John F. Kennedy School of Government.
[Downloadable!] Jeffrey A. Frankel & Andrew K. Rose, 2002.
"Is Trade Good or Bad for the Environment? Sorting Out the Causality ,"
NBER Working Papers
9201, National Bureau of Economic Research, Inc.
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