The effect of trade openness on deforestation: empirical analysis for 142 countries

Tsurumi, Tetsuya & Managi, Shunsuke (2014) The effect of trade openness on deforestation: empirical analysis for 142 countries. Environmental Economics and Policy Studies, 16(4), pp. 305-324.

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This study explores the effect of trade openness on deforestation. Previous studies do not find a clear effect of trade openness on deforestation. We use updated data on the annual rate of deforestation for 142 countries from 1990 to 2003, treat trade and income as endogenous, and take into consideration an adjustment process by applying a dynamic model. We find that an increase in trade openness increases deforestation for non-OECD countries while slowing down deforestation for OECD countries. There is a possibility that both capital-labor and environmental-regulation effects have a negative impact on deforestation in developing countries, whereas the opposite holds in developed countries. © 2012 Springer Japan.

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ID Code: 75366
Item Type: Journal Article
Refereed: Yes
Keywords: Comparative advantage; Deforestation; Environment; Trade openness
DOI: 10.1007/s10018-012-0051-5
ISSN: 1867-383X
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Deposited On: 21 Aug 2014 00:46
Last Modified: 24 Oct 2014 01:34

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