International Trade in Natural Resources: Practice and policy
AbstractNatural resources account for 20% of world trade, and dominate the exports of many countries. Policy is used to manipulate both international and domestic prices of resources, yet this policy is largely outside the disciplines of the WTO. The instruments used include export taxes, price controls, production quotas, and domestic producer and consumer taxes (equivalent to trade taxes if no domestic production is possible). We review the literature, and argue that the policy equilibrium is inefficient. This inefficiency is exacerbated by market failure in long run contracts for exploration and development of natural resources. Properly coordinated policy reforms offer an avenue to resource exporting and importing countries to overcome these inefficiencies and obtain mutual gains.
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Bibliographic InfoPaper provided by Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford in its series OxCarre Working Papers with number 084.
Date of creation: 2012
Date of revision:
natural resources; trade; export tax; tariff escalation; OPEC; WTO; terms of trade;
Other versions of this item:
- Michele Ruta & Anthony J. Venables, 2012. "International Trade in Natural Resources: Practice and Policy," Annual Review of Resource Economics, Annual Reviews, vol. 4(1), pages 331-352, 08.
- Michele Ruta & Anthony J. Venables, 2012. "International Trade in Natural Resources: Practice and Policy," CESifo Working Paper Series 3778, CESifo Group Munich.
- Ruta, Michele & Venables, Anthony J, 2012. "International trade in natural resources: Practice and policy," CEPR Discussion Papers 8903, C.E.P.R. Discussion Papers.
- F1 - International Economics - - Trade
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
- NEP-ENV-2012-06-25 (Environmental Economics)
- NEP-INT-2012-06-25 (International Trade)
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