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Trade liberalisation and global-scale forest transition

Rafael González-Val () and Fernando Pueyo ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we develop a new theoretical model that explains the forest transition not at a local, but at a worldwide level, in a trade liberalisation scenario. Our model has economic geography foundations: transport costs affect the distribution of firms between countries. We also introduce a renewable natural resource used as an input by manufacturing firms. The results reproduce forest transition behaviour but at a global scale: a decrease in transport costs has a negative effect on the worldwide stock of the natural resource in the short-term, but in the long-term this initial effect is reversed as a consequence of industrial reorganisation between countries because of the change in transport costs.

Keywords: Forest transition; renewable resources; industrial location; geography; trade (search for similar items in EconPapers)
JEL-codes: Q23 F18 R12 Q20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env
Date: 2012-01-26
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Related works:
Working Paper: Trade Liberalisation and Global-scale Forest Transition (2013) Downloads
Working Paper: Trade Liberalisation and Global-scale Forest Transition (2013) Downloads
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