Recycling and International Trade Theory

Kazunori Tanigaki

Review of Development Economics, 2007, vol. 11, issue 1, 1-12

Abstract: Recently recycling and the production of secondary materials have increased in many countries. However, there is little analysis examining the effects of recycling on comparative advantage, trade, and welfare. In a model with recycling sectors, the author examines whether the Rybczynski theorem is valid, how the price effects are modified, how a recycling subsidy changes the production structure and comparative advantage. It is found that demand has an effect on final goods production and comparative advantage since consumption goods are transformed into recycling inputs.

Date: 2007
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https://doi.org/10.1111/j.1467-9361.2007.00361.x

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