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Trade and the Environment in Latin America: Examining the Linkage with the USA

Author

Listed:
  • Fumiko Takeda

    () (University of Tokyo)

  • Katsumi Matsuura

    () (Hiroshima University)

Abstract

This paper investigates how trade of "dirty" goods with the USA can affect the environmental pollution in Latin American (LA). By controlling for trade openness, the share of manufacturing in GDP, and the trade of pollution-intensive products with USA, CO2 emissions are estimated for 14 LA countries between 1986 and 1999. Our results show that increasing exports of "dirty" products to the USA tends to raise CO2 emissions in LA countries, while the opposite results occur for growing imports of those goods from the USA. Since the effect of "dirty" imports from the USA is larger than the effect of "dirty" exports to the USA, our results indicate that the trade of "dirty" products with the USA on the whole reduces CO2 emissions in LA countries during the estimation period.

Suggested Citation

  • Fumiko Takeda & Katsumi Matsuura, 2005. "Trade and the Environment in Latin America: Examining the Linkage with the USA," Economics Bulletin, AccessEcon, vol. 6(6), pages 1-8.
  • Handle: RePEc:ebl:ecbull:eb-05f10001
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    References listed on IDEAS

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    6. Cole, Matthew A., 2003. "Development, trade, and the environment: how robust is the Environmental Kuznets Curve?," Environment and Development Economics, Cambridge University Press, vol. 8(04), pages 557-580, October.
    7. Fumiko Takeda & Katsumi Matsuura, 2005. "Trade and the Environment in Latin America: Examining the Linkage with the USA," Economics Bulletin, AccessEcon, vol. 6(6), pages 1-8.
    8. Gene M. Grossman & Alan B. Krueger, 1991. "Environmental Impacts of a North American Free Trade Agreement," NBER Working Papers 3914, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Njindan Iyke, Bernard & Ho, Sin-Yu, 2017. "Trade Openness and Carbon Emissions: Evidence from Central and Eastern Europe," MPRA Paper 80399, University Library of Munich, Germany.
    2. Fumiko Takeda & Katsumi Matsuura, 2005. "Trade and the Environment in Latin America: Examining the Linkage with the USA," Economics Bulletin, AccessEcon, vol. 6(6), pages 1-8.
    3. Ling, Chong Hui & Ahmed, Khalid & Muhamad, Rusnah binti & Shahbaz, Muhammad, 2015. "Decomposing the trade-environment nexus for Malaysia: What do the technique, scale, composition and comparative advantage effect indicate?," MPRA Paper 67165, University Library of Munich, Germany, revised 09 Oct 2015.

    More about this item

    Keywords

    Trade Pollution Environmental Kuznets curves Inter-American relationship;

    JEL classification:

    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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