Renewable Resources and the Gains from Trade

Posted: 16 Oct 2000

See all articles by Rognvaldur Hannesson

Rognvaldur Hannesson

Norwegian School of Economics (NHH); Norwegian School of Economics (NHH) - Department of Economics

Abstract

The Brander-Taylor small, open-economy model of trade in a renewable resource and other goods is modified to allow for diminishing returns in the other goods sector. It is shown that opening up for trade may result in steady-state gains from trade, even when there is open access to the resource and the country does not specialize fully in resource extraction. It is also shown that transition to optimal management, with price-taking behaviour, may result in a welfare loss.

JEL Classification: F1, Q2

Suggested Citation

Hannesson, Rognvaldur, Renewable Resources and the Gains from Trade. Canadian Journal of Economics, Vol. 33, Issue 1, February 2000, Available at SSRN: https://ssrn.com/abstract=238649

Rognvaldur Hannesson (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway
+47 55 959 260 (Phone)

Norwegian School of Economics (NHH) - Department of Economics

Helleveien 30
N-5035 Bergen
Norway

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
450
PlumX Metrics