Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89594
Authors: 
González-Val, Rafael
Pueyo, Fernando
Year of Publication: 
2013
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 70.2013
Abstract: 
In this paper, we develop a theoretical model that provides an additional explanation for the forest transition based on a trade liberalisation scenario. Furthermore, in contrast with most explanations, in which the forest transition can only take place at a local level at the expense of other areas, ours is capable of supporting such phenomenon at a worldwide level. We introduce a renewable natural resource (wood), used as an input by manufacturing firms, in a framework with economic geography foundations: transport costs affect the distribution of firms between countries. In a general equilibrium, the results reproduce the forest transition at a global scale: a decrease in transport costs (in particular, that of the natural resource) has a negative effect on the worldwide stock of the natural resource in the short-term; however, this effect is offset during the transition as a consequence of industrial reallocation between countries and eventually disappears in the long-run.
Subjects: 
Forest Transition
Natural Resources
Industrial Location
Trade Liberalisation
JEL: 
F18
Q20
Q23
R12
Document Type: 
Working Paper

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