The effect of trade openness on deforestation: empirical analysis for 142 countries
Tetsuya Tsurumi and
Shunsuke Managi
Environmental Economics and Policy Studies, 2014, vol. 16, issue 4, 305-324
Abstract:
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. Copyright Springer Japan 2014
Keywords: Trade openness; Environment; Comparative advantage; Deforestation; Q23; Q56; Q58 (search for similar items in EconPapers)
Date: 2014
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Working Paper: The Effect of Trade Openness on Deforestation: Empirical Analysis for 142 Countries (2011) 
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Persistent link: https://EconPapers.repec.org/RePEc:spr:envpol:v:16:y:2014:i:4:p:305-324
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DOI: 10.1007/s10018-012-0051-5
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