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Deforestation, Property Rights, and International Trade

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  • Susana Ferreira

Abstract

Deforestation primarily affects developing countries. Most developing countries share two characteristics: (1) trade liberalization reforms in the last two decades, and (2) weak property rights and limited rule of law. This paper investigates this second-best world; first, in a stylized model in which trade distortions are eliminated in an economy whose natural resources are subject to open access; second, empirically in an estimation exercise that disentangles the direct effect of trade on deforestation rates and an indirect effect through its interaction with ownership security. In accordance with the theory, the results show that only the indirect effect is significant.

Suggested Citation

  • Susana Ferreira, 2004. "Deforestation, Property Rights, and International Trade," Land Economics, University of Wisconsin Press, vol. 80(2), pages 174-193.
    • Handle: RePEc:uwp:landec:v:80:y:2004:i:2:p:174-193
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    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

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