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Trade Policies, Economic Growth, and the Direct Causes of Deforestation

Author

Listed:
  • Ramón López
  • Gregmar I. Galinato

Abstract

This paper combines elasticities from microstudies with estimates from a cross-country analysis to identify structural relationships explaining deforestation in Brazil, Indonesia,Malaysia, and the Philippines. Economy-wide factors such as trade openness and economic growth explain an important portion of the variation in three key factors of deforestation: poverty, agricultural expansion, and road building. Trade increases forest cover in Brazil and in the Philippines, but has no significant effect in Indonesia and Malaysia. An important channel through which trade policy affects forests in all four countries is agricultural expansion. Economic growth has a negative and relatively large impact on forest cover.

Suggested Citation

  • Ramón López & Gregmar I. Galinato, 2005. "Trade Policies, Economic Growth, and the Direct Causes of Deforestation," Land Economics, University of Wisconsin Press, vol. 81(2).
  • Handle: RePEc:uwp:landec:v:81:y:2005:i:2:p145-169
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Combes, J.-L. & Combes Motel, P. & Minea, A. & Villieu, P., 2015. "Deforestation and seigniorage in developing countries: A tradeoff?," Ecological Economics, Elsevier, vol. 116(C), pages 220-230.
    2. Liana O Anderson & Samantha De Martino & Torfinn Harding & Karlygash Kuralbayeva & Andre Lima, 2016. "The Effects of Land Use Regulation on Deforestation: Evidence from the Brazilian Amazon," OxCarre Working Papers 172, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    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. Gregmar Galinato & Suzette Galinato, 2013. "The Role of Government Spending on Deforestation and Carbon Dioxide Emissions from Land Use Change," Working Papers 2013-14, School of Economic Sciences, Washington State University.
    5. 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.
    6. Robalino, Juan & Herrera, Luis Diego, 2010. "Trade and deforestation: A literature review," WTO Staff Working Papers ERSD-2010-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    7. Galinato, Gregmar I. & Galinato, Suzette P., 2016. "The effects of government spending on deforestation due to agricultural land expansion and CO2 related emissions," Ecological Economics, Elsevier, vol. 122(C), pages 43-53.
    8. Galinato, Gregmar I. & Galinato, Suzette P., 2013. "The short-run and long-run effects of corruption control and political stability on forest cover," Ecological Economics, Elsevier, vol. 89(C), pages 153-161.
    9. 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.
    10. Mann, Michael L. & Kaufmann, Robert K. & Bauer, Dana Marie & Gopal, Sucharita & Nomack, Mallory & Womack, Jesse Y. & Sullivan, Kerry & Soares-Filho, Britaldo S., 2014. "Pasture conversion and competitive cattle rents in the Amazon," Ecological Economics, Elsevier, vol. 97(C), pages 182-190.
    11. Gregmar Galinato & Suzette Galinato, 2010. "The Effects of Corruption Control and Political Stability on the Environmental Kuznets Curve of Deforestation-Induced Carbon Dioxide Emissions," Working Papers 2010-9, School of Economic Sciences, Washington State University.

    More about this item

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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