TY  - JOUR
AU  - Brander,James A.
AU  - Taylor,M. Scott
TI  - Open Access Renewable Resources: Trade and Trade Policy in a Two-CountryModel
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5474
PY  - 1996
Y2  - March 1996
UR  - http://www.nber.org/papers/w5474
L1  - http://www.nber.org/papers/w5474.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-good, two-country model with national open access renewable resources.  We derive an appropriate analog of `factor proportions' for the renewable resource case and link it to trade patterns and to the likelihood of diversified production.  The resource importer gains from trade.  However, a diversified resource exporting country necessarily suffers a decline in steady state utility resulting from trade, and may lose along the entire transition path.  Thus the basic `gains from trade' presumption is substantially undermined by open access resources.  Tariffs imposed by the resource importing country always benefit the resource exporter, and may be pareto-improving.
ER  -