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Trade Liberalization, Resource Degradation And Industrial Pollution In Developing Countries: An Integrated Analysis

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  • Ian Coxhead
  • Sisira Jayasuriya

Abstract

“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.

Suggested Citation

  • Ian Coxhead & Sisira Jayasuriya, 2003. "Trade Liberalization, Resource Degradation And Industrial Pollution In Developing Countries: An Integrated Analysis," Department of Economics - Working Papers Series 884, The University of Melbourne.
  • Handle: RePEc:mlb:wpaper:884
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    File URL: http://www.economics.unimelb.edu.au/downloads/wpapers-03/884.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade policy; pollution; deforestation; developing countries;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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