Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92760
Authors: 
Coxhead, Ian
Jayasuriya, Sisira
Year of Publication: 
2005
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 633
Abstract: 
Many developing countries possess comparative advantage both in natural resources and in labor-intensive industries, and experience both industrial pollution and natural resource degradation. We present a model that incorporates these stylized facts together with key spatial features and property rights failures typical of developing economies. We explore consequences of anticipated domestic and global trade policy and world price changes. Similar exogenous or policy shocks are seen to have contrasting effects, depending on initial economic structure, trade orientation and policy regime. Further, when there is more than one sectoral source of environmental damage, a policy or price change may have unexpected environmental and welfare results. Nevertheless, in many empirically important cases, reducing protection for capital intensive manufactures is likely to improve both income and environmental quality, a point that we illustrate by reference to some Asian case studies. These results stand in contrast to those obtained in much of the current analytical literature.
Subjects: 
trade
environment
pollution
deforestation
developing countries
JEL: 
F18
O24
Q28
Document Type: 
Working Paper

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