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How Liberalization of Trade in Services May Conserve Natural Resources


  • Nordasm H.K.


A three-sector model of trade and location where two sectors produce intermediate inputs to the third sector is constructed. One of the intermediate sectors is located in the South and produces a freely traded homogenous input, while the other produces a differentiated input which is traded subject to transport costs. The impact of declining transport costs is anlyzed. Multiple equilibria occur for reasonable parameter values, but none of the equilibria involves agglomeration.

Suggested Citation

  • Nordasm H.K., 1997. "How Liberalization of Trade in Services May Conserve Natural Resources," Norway; Department of Economics, University of Bergen 1397, Department of Economics, University of Bergen.
  • Handle: RePEc:fth:bereco:1397

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation


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