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Trade, Liberalization, Resource Degradation and Industrial Pollution in Developing Countries: An Integrated Analysis

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  • Coxhead, Ian

    (U of Wisconsin)

  • Jayasuriya, Sisira

    (U of Melbourne)

Abstract

"Environmental damage" is in reality many different types of phenomena, each with a unique set of causes and characteristics. We present an analytical model identifying intersectoral and interregional links of economy and environment, and explore consequences of trade policy and world price changes. The model contains explicit spatial and institutional features relevant to developing economies. We show that similar trade or policy shocks can have different effects, depending on initial economic structure, trade orientation and policies. Further, when there is more than one sectoral source of environmental damage, a policy or price shock may have unexpected environmental and welfare results.

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Bibliographic Info

Paper provided by University of Wisconsin, Agricultural and Applied Economics in its series Staff Paper Series with number 462.

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Date of creation: Oct 2003
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Handle: RePEc:ecl:wisagr:462

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  1. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," World Bank Economic Review, World Bank Group, vol. 2(3), pages 255-71, September.
  2. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
  3. Copeland, Brian R. & Taylor, M. Scott, 1999. "Trade, spatial separation, and the environment," Journal of International Economics, Elsevier, vol. 47(1), pages 137-168, February.
  4. Deacon Robert T., 1995. "Assessing the Relationship between Government Policy and Deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 1-18, January.
  5. Coxhead, Ian A. & Jayasuriya, Sisira, 1994. "Trade and Tax Policy Reform and the Environment: The Economics of Soil Erosion in Developing Countries," 1994 Conference (38th), February 8-10, 1994, Wellington, New Zealand 148111, Australian Agricultural and Resource Economics Society.
  6. Bandara, Jayatilleke S. & Coxhead, Ian, 1999. "Can Trade Liberalization Have Environmental Benefits in Developing Country Agriculture? A Sri Lankan Case Study," Journal of Policy Modeling, Elsevier, vol. 21(3), pages 349-374, May.
  7. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
  8. Mussa, Michael, 1979. "The two-sector model in terms of its dual : A geometric exposition," Journal of International Economics, Elsevier, vol. 9(4), pages 513-526, November.
  9. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
  10. Ian Coxhead, 2000. "Tax Reform and the Environment in Developing Economies: Is a Double Dividend Possible," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 431, Wisconsin-Madison Agricultural and Applied Economics Department.
  11. Diao, Xinshen & Somwaru, Agapi & Roe, Terry L., 2001. "A Global Analysis Of Agricultural Trade Reform In Wto Member Countries," Bulletins 12984, University of Minnesota, Economic Development Center.
  12. Cororaton, Caesar B. & Aldaba, Rafaelita M., 2001. "Trade Liberalization and Pollution: Evidence from the Philippines," Discussion Papers DP 2001-25, Philippine Institute for Development Studies.
  13. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
  14. Rafaelita M. Adalba & Caesar B. Cororaton, 2003. "Trade Liberalization and Pollution: Evidence from the Philippines," EEPSEA Research Report rr2003053, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2003.
  15. Corden, W M & Findlay, Ronald, 1975. "Urban Unemployment, Intersectoral Capital Mobility and Development Policy," Economica, London School of Economics and Political Science, vol. 42(165), pages 59-78, February.
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