Trade liberalisation and global-scale forest transition
AbstractIn this paper, we develop a new theoretical model that explains the forest transition not at a local, but at a worldwide level, in a trade liberalisation scenario. Our model has economic geography foundations: transport costs affect the distribution of firms between countries. We also introduce a renewable natural resource used as an input by manufacturing firms. The results reproduce forest transition behaviour but at a global scale: a decrease in transport costs has a negative effect on the worldwide stock of the natural resource in the short-term, but in the long-term this initial effect is reversed as a consequence of industrial reorganisation between countries because of the change in transport costs.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36271.
Date of creation: 26 Jan 2012
Date of revision:
Forest transition; renewable resources; industrial location; geography; trade;
Other versions of this item:
- Rafael González-Val & Fernando Pueyo, 2013. "Trade Liberalisation and Global-scale Forest Transition," Working Papers 2013.70, Fondazione Eni Enrico Mattei.
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- F18 - International Economics - - Trade - - - Trade and Environment
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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