TY  - JOUR
AU  - Brander,James A.
AU  - Taylor,M. Scott
TI  - International Trade and Open Access Renewable Resources: The Small Open Economy Case
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5021
PY  - 1995
Y2  - February 1995
UR  - http://www.nber.org/papers/w5021
L1  - http://www.nber.org/papers/w5021.pdf
N1  - Author contact info:
James A. Brander
University of British Columbia
Faculty of Commerce
2053 Main Mall
Vancouver, B.C. V6T 1Z2  CANADA
Tel: 604/822-8483
Fax: 604/822-8477
E-Mail: brander@sauder.ubc.ca

M. Scott Taylor
IEE Canada Research Chair
Department of Economics
The University of Calgary
2500 University Drive, N.W.
Calgary, AB T2N 1N4
CANADA
Tel: 403/220-8912
Fax: 403/282-5262
E-Mail: mstaylor@ucalgary.ca
AB  - 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.
ER  -