The Effect of Trade Openness on Deforestation: Empirical Analysis for 142 Countries

Tetsuya Tsurumi and Shunsuke Managi

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Trade Openness; Environment; Comparative Advantage; Deforestation (search for similar items in EconPapers)
JEL-codes: F10 Q23 (search for similar items in EconPapers)
Date: 2011-12-30
New Economics Papers: this item is included in nep-agr, nep-env and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: The effect of trade openness on deforestation: empirical analysis for 142 countries (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:35805

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