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Is Globalization Bad For The Environment? International Trade And Land Degradation In Developing Countries:The Case Of Small Open Economy

  • Demeke, Bayou

This paper uses a two-good specific factors model to derive a relationship between international trade, land degradation, and welfare. Because developing countries enjoy comparative advantage in agriculture, they will export agricultural goods. We found that trade could lower steady state land quality and welfare. We conclude that poor resource management undermines the conventional gains from globalization.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20376.

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Date of creation: 2004
Date of revision:
Handle: RePEc:ags:aaea04:20376
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  1. Barrett, Scott, 1991. "Optimal soil conservation and the reform of agricultural pricing policies," Journal of Development Economics, Elsevier, vol. 36(2), pages 167-187, October.
  2. Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April.
  3. Lopez, Ramon, 1997. "Environmental externalities in traditional agriculture and the impact of trade liberalization: the case of Ghana," Journal of Development Economics, Elsevier, vol. 53(1), pages 17-39, June.
  4. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 1998. "Is Free Trade Good for the Environment?," NBER Working Papers 6707, National Bureau of Economic Research, Inc.
  5. Bulte, Erwin H. & van Soest, Daan P., 2001. "Environmental degradation in developing countries: households and the (reverse) Environmental Kuznets Curve," Journal of Development Economics, Elsevier, vol. 65(1), pages 225-235, June.
  6. Chichilnisky, G., 1993. "North-South Trade and the Dynamics of Renewable Resources," Papers 93-15, Columbia - Graduate School of Business.
  7. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
  8. James A. Brander & M. Scott Taylor, 1997. "International Trade and Open-Access Renewable Resources: The Small Open Economy Case," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 526-52, August.
  9. Deacon Robert T., 1995. "Assessing the Relationship between Government Policy and Deforestation," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 1-18, January.
  10. Coxhead, Ian A. & Jayasuriya, Sisira, 1994. "Trade and Tax Policy Reform and the Environment: The Economics of Soil Erosion in Developing Countries," 1994 Conference (38th), February 8-10, 1994, Wellington, New Zealand 148111, Australian Agricultural and Resource Economics Society.
  11. Barbier, Edward B., 2000. "Links between economic liberalization and rural resource degradation in the developing regions," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
  12. Mussa, Michael, 1974. "Tariffs and the Distribution of Income: The Importance of Factor Specificity, Substitutability, and Intensity in the Short and Long Run," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1191-1203, Nov.-Dec..
  13. Deininger, Klaus W & Minten, Bart, 1999. "Poverty, Policies, and Deforestation: The Case of Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 313-44, January.
  14. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
  15. Mayer, Wolfgang, 1974. "Short-Run and Long-Run Equilibrium for a Small Open Economy," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 955-67, Sept./Oct.
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