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Trade liberalisation and global-scale forest transition

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  • González-Val, Rafael
  • Pueyo, Fernando

Abstract

In 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 Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36271.

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Date of creation: 26 Jan 2012
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Handle: RePEc:pra:mprapa:36271

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Keywords: Forest transition; renewable resources; industrial location; geography; trade;

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  2. Pfaff, Alexander S. P., 1999. "What Drives Deforestation in the Brazilian Amazon?: Evidence from Satellite and Socioeconomic Data," Journal of Environmental Economics and Management, Elsevier, vol. 37(1), pages 26-43, January.
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  5. James A. Brander & M. Scott Taylor, 1996. "Open Access Renewable Resources: Trade and Trade Policy in a Two-CountryModel," NBER Working Papers 5474, National Bureau of Economic Research, Inc.
  6. Eustaquio Reis & Diana Weinhold, 2004. "Land Use and Transportation Costs in the Brazilian Amazon," Urban/Regional 0410003, EconWPA.
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  11. James A. Brander & M. Scott Taylor, 1995. "International Trade and Open Access Renewable Resources: The Small Open Economy Case," NBER Working Papers 5021, National Bureau of Economic Research, Inc.
  12. Andrew D. Foster & Mark R. Rosenzweig, 2003. "Economic Growth And The Rise Of Forests," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 601-637, May.
  13. James Brander & M. Scott Taylor, 1997. "International Trade Between Consumer and Conservationist Countries," NBER Working Papers 6006, National Bureau of Economic Research, Inc.
  14. Myllyntaus, Timo & Mattila, Timo, 2002. "Decline or increase? The standing timber stock in Finland, 1800-1997," Ecological Economics, Elsevier, vol. 41(2), pages 271-288, May.
  15. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Working Papers 0025, University of Washington, Department of Economics.
  16. Naoto Jinji, 2006. "International trade and terrestrial open-access renewable resources in a small open economy," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 790-808, August.
  17. Andersen,Lykke E. & Granger,Clive W. J. & Reis,Eustaquio J. & Weinhold,Diana & Wunder,Sven, 2002. "The Dynamics of Deforestation and Economic Growth in the Brazilian Amazon," Cambridge Books, Cambridge University Press, number 9780521811972.
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