Economics at your fingertips  

Deforestation, foreign demand and export dynamics in Indonesia

Joel Rodrigue () and Omolola Soumonni

Journal of International Economics, 2014, vol. 93, issue 2, 316-338

Abstract: This paper presents a dynamic, heterogeneous firm model of investment in environmental abatement and exporting. The model highlights the interaction between firms' environmental investment and export decisions on the evolution of productivity and export demand in timber manufacturing industries. The model is structurally estimated using Indonesian timber manufacturing data that captures firm-level variation in environmental investment and export behavior. The results suggest that environmental abatement has little impact on productivity dynamics, but does encourage growth in export demand. Counterfactual experiments quantify the impact of policy change on trade and abatement decisions.

Keywords: Abatement; Productivity; Export demand; Indonesia (search for similar items in EconPapers)
JEL-codes: F14 Q23 Q56 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.jinteco.2014.03.004

Access Statistics for this article

Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and Rodríguez-Clare, Andrés

More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-09-13
Handle: RePEc:eee:inecon:v:93:y:2014:i:2:p:316-338