Tetsuya, Tsurumi and Shunsuke, Managi (2011): The Effect of Trade Openness on Deforestation: Empirical Analysis for 142 Countries.
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This study explores the effect of trade openness on deforestation. Previous studies do not find a clear effect of trade openness on deforestation. We use updated data on the annual rate of deforestation for 142 countries from 1990 to 2003, treat trade and income as endogenous, and take into consideration an adjustment process by applying a dynamic model. We find that an increase in trade openness increases deforestation for non-OECD countries while slowing down deforestation for OECD countries. There is a possibility that both capital-labor and environmental-regulation effects have a negative impact on deforestation in developing countries, whereas the opposite holds in developed countries.
|Item Type:||MPRA Paper|
|Original Title:||The Effect of Trade Openness on Deforestation: Empirical Analysis for 142 Countries|
|Keywords:||Trade Openness; Environment; Comparative Advantage; Deforestation|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q23 - Forestry
F - International Economics > F1 - Trade > F10 - General
|Depositing User:||Shunsuke MANAGI|
|Date Deposited:||08. Jan 2012 05:35|
|Last Modified:||12. Feb 2013 10:49|
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