How Liberalization of Trade in Services May Conserve Natural Resources

Nordasm H.K.

Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen

Abstract: A three-sector model of trade and location where two sectors produce intermediate inputs to the third sector is constructed. One of the intermediate sectors is located in the South and produces a freely traded homogenous input, while the other produces a differentiated input which is traded subject to transport costs. The impact of declining transport costs is anlyzed. Multiple equilibria occur for reasonable parameter values, but none of the equilibria involves agglomeration.

Keywords: SERVICE INDUSTRY; NATURAL RESOURCES; TRADE LIBERALIZATION (search for similar items in EconPapers)
JEL-codes: F12 (search for similar items in EconPapers)
Pages: 34 pages
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:fth:bereco:1397

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