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Deforestation, Property Rights, and International Trade


  • Susana Ferreira


Deforestation primarily affects developing countries. Most developing countries share two characteristics: (1) trade liberalization reforms in the last two decades, and (2) weak property rights and limited rule of law. This paper investigates this second-best world; first, in a stylized model in which trade distortions are eliminated in an economy whose natural resources are subject to open access; second, empirically in an estimation exercise that disentangles the direct effect of trade on deforestation rates and an indirect effect through its interaction with ownership security. In accordance with the theory, the results show that only the indirect effect is significant.

Suggested Citation

  • Susana Ferreira, 2004. "Deforestation, Property Rights, and International Trade," Land Economics, University of Wisconsin Press, vol. 80(2), pages 174-193.
  • Handle: RePEc:uwp:landec:v:80:y:2004:i:2:p:174-193

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    References listed on IDEAS

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    Cited by:

    1. Copeland, Brian R., 2005. "Policy Endogeneity and the Effects of Trade on the Environment," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(1), April.
    2. Coxhead, Ian, 2007. "A New Resource Curse? Impacts of China's Boom on Comparative Advantage and Resource Dependence in Southeast Asia," World Development, Elsevier, vol. 35(7), pages 1099-1119, July.
    3. Yi-Bin Chiu, 2012. "Deforestation and the Environmental Kuznets Curve in Developing Countries: A Panel Smooth Transition Regression Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(2), pages 177-194, June.
    4. Fenske, James, 2014. "Imachi Nkwu: Trade and the Commons," The Journal of Economic History, Cambridge University Press, vol. 74(01), pages 39-68, March.
    5. Culas, Richard J., 2012. "REDD and forest transition: Tunneling through the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 79(C), pages 44-51.
    6. repec:spr:lsprsc:v:10:y:2017:i:2:d:10.1007_s12076-017-0186-x is not listed on IDEAS
    7. Basak BAYRAMOGLU & Jean-François JACQUES, 2014. "The consequences of trade openness on the availability of seafood resources: Methodology and evidence based in the case of Turkey," FOODSECURE Working papers 16, LEI Wageningen UR.
    8. Jean-Louis COMBES & Pascale COMBES MOTEL & Philippe DELACOTE, 2014. "Public expenses, credit and natural capital: Substitution or complementarity?," Working Papers 201409, CERDI.
    9. Faria, Weslem Rodrigues & Almeida, Alexandre Nunes, 2016. "Relationship between openness to trade and deforestation: Empirical evidence from the Brazilian Amazon," Ecological Economics, Elsevier, vol. 121(C), pages 85-97.
    10. repec:eee:ecolec:v:144:y:2018:i:c:p:214-227 is not listed on IDEAS
    11. Weslem Faria & Alexandre Almeida, 2011. "Agricultural Expansion, Openness to Trade and Deforestation at the Brazilian Amazon: A Spatial Econometric Analysis," ERSA conference papers ersa11p1013, European Regional Science Association.
    12. Basak Bayramoglu & Jean-François Jacques, 2012. "Fishery Resources and Trade Openness: Evidence from Turkey," Working Papers 2012/02, INRA, Economie Publique.

    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices


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