TY  - JOUR
AU  - Brander,James
AU  - Taylor,M. Scott
TI  - International Trade Between Consumer and Conservationist Countries
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6006
PY  - 1997
Y2  - April 1997
UR  - http://www.nber.org/papers/w6006
L1  - http://www.nber.org/papers/w6006.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  - We consider trade between a  consumer' country with an open access renewable resource and a  conservationist' country that regulates resource harvesting to maximize domestic steady-state utility.  In what we call the  mild overuse' case, the consumer country exports the resource good and suffers steady-state losses from trade, as suggested by the  conventional wisdom' that weak resource management standards confer a competitive advantage on domestic firms in the resource sector but cause welfare losses. Strikingly, however, when the resource stock is most in jeopardy, the conservationist country exports the resource good in steady state and both countries experience gains from trade.
ER  -