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Trade, Liberalization, Resource Degradation and Industrial Pollution in Developing Countries: An Integrated Analysis

  • Coxhead, Ian

    (U of Wisconsin)

  • Jayasuriya, Sisira

    (U of Melbourne)

"Environmental damage" is in reality many different types of phenomena, each with a unique set of causes and characteristics. We present an analytical model identifying intersectoral and interregional links of economy and environment, and explore consequences of trade policy and world price changes. The model contains explicit spatial and institutional features relevant to developing economies. We show that similar trade or policy shocks can have different effects, depending on initial economic structure, trade orientation and policies. Further, when there is more than one sectoral source of environmental damage, a policy or price shock may have unexpected environmental and welfare results.

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Paper provided by University of Wisconsin, Agricultural and Applied Economics in its series Staff Paper Series with number 462.

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Date of creation: Oct 2003
Date of revision:
Handle: RePEc:ecl:wisagr:462
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  1. Rafaelita M. Adalba & Caesar B. Cororaton, 2003. "Trade Liberalization and Pollution: Evidence from the Philippines," EEPSEA Research Report rr2003053, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2003.
  2. Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," World Bank Economic Review, World Bank Group, vol. 2(3), pages 255-71, September.
  3. Coxhead, Ian, 2000. "Tax Reform and the Environment in Developing Economies: Is a Double Dividend Possible," Staff Paper Series 431, University of Wisconsin, Agricultural and Applied Economics.
  4. Cororaton, Caesar B. & Aldaba, Rafaelita M., 2001. "Trade Liberalization and Pollution: Evidence from the Philippines," Discussion Papers DP 2001-25, Philippine Institute for Development Studies.
  5. 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.
  6. Grossman, Gene & Krueger, Alan B, 1992. "Environmental Impacts of a North American Free Trade Agreement," CEPR Discussion Papers 644, C.E.P.R. Discussion Papers.
  7. Copeland,B.R. & Scott Taylor,M., 2003. "Trade, growth and the environment," Working papers 10, Wisconsin Madison - Social Systems.
  8. Corden, W M & Findlay, Ronald, 1975. "Urban Unemployment, Intersectoral Capital Mobility and Development Policy," Economica, London School of Economics and Political Science, vol. 42(165), pages 59-78, February.
  9. Brian R. Copeland & M. Scott Taylor, 1995. "Trade, Spatial Separation, and the Environment," NBER Working Papers 5242, National Bureau of Economic Research, Inc.
  10. Mussa, Michael, 1979. "The two-sector model in terms of its dual : A geometric exposition," Journal of International Economics, Elsevier, vol. 9(4), pages 513-526, November.
  11. Bandara, Jayatilleke S. & Coxhead, Ian, 1999. "Can Trade Liberalization Have Environmental Benefits in Developing Country Agriculture? A Sri Lankan Case Study," Journal of Policy Modeling, Elsevier, vol. 21(3), pages 349-374, May.
  12. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
  13. Diao, Xinshen & Somwaru, Agapi & Roe, Terry L., 2001. "A Global Analysis Of Agricultural Trade Reform In Wto Member Countries," Bulletins 12984, University of Minnesota, Economic Development Center.
  14. 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.
  15. 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.
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