NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

International Trade and Open Access Renewable Resources: The Small Open Economy Case

James A. Brander, M. Scott Taylor

NBER Working Paper No. 5021
Issued in February 1995
NBER Program(s):   ITI

This paper develops a two-sector general equilibrium model of an economy with an open access renewable resource. We characterize the autarkic steady state, showing that autarky prices (and 'comparative advantage') are determined by the ratio of intrinsic resource growth to labor. Under free trade, steady state trade and production patterns for a small open economy are determined by whether the resource good's world price exceeds its autarky price. Strikingly, if the small country exports the resource good while remaining diversified, then steady-state utility is lower than in autarky, and increases in the world price of exports are welfare-reducing.

download in pdf format
   (555 K)

email paper

This paper is available as PDF (555 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5021

Published: Canadian Journal of Economics, Vol. 30, no. 3 (August 1997): 526-552.

Users who downloaded this paper also downloaded these:
Brander and Taylor w5474 Open Access Renewable Resources: Trade and Trade Policy in a Two-CountryModel
Brander and Taylor w6006 International Trade Between Consumer and Conservationist Countries
Copeland and Taylor w10836 Trade, Tragedy, and the Commons
Grossman and Krueger w3914 Environmental Impacts of a North American Free Trade Agreement
Antweiler, Copeland, and Taylor w6707 Is Free Trade Good for the Environment?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us