This paper develops a two-sector general equilibrium model of an economy with an open access renewable resource. We characterize the autarkic steady state, showing that autarky prices (and 'comparative advantage') are determined by the ratio of intrinsic resource growth to labor. Under free trade, steady state trade and production patterns for a small open economy are determined by whether the resource good's world price exceeds its autarky price. Strikingly, if the small country exports the resource good while remaining diversified, then steady-state utility is lower than in autarky, and increases in the world price of exports are welfare-reducing.

International Trade and Open Access Renewable Resources: The Small Open Economy Case

This paper investigates whether and how openness to international trade affects overfishing in national exclusive economic zones (EEZ). Brander and Taylor propose two scenarios: trade liber...

Does International Trade Cause Overfishing

Although Malaysia is a small open economy surrounded by the ocean, it still experiences a critical fish trade deficit. This study examines the nonlinear effects of trade openness on Malaysian fish trade balance from 1976 to 2016, using the Nonlinear Autoregressive Distributed Lag (NARDL) approach. The other independent variables applied in the model are the exchange rate and domestic income. Findings show that the variables are cointegrated. In the long-run, positive change in trade openness has a significant negative effect on the trade balance. The emphasis of the study is also placed on shreds of evidence of the long-run and short-run asymmetric effects of trade openness. Domestic income and depreciation of the exchange rate offer significant positive impacts on the trade balance. In the short-run, all the variables yield an opposite effect. The outcome of the exchange rate supports the J-curve effect and the Marshall-Lerner condition. This research may help the policymakers and traders to have a better understanding of the sector and thus develop suitable long-term strategies to improve the fish trade balance.

Asymmetric Effects of Trade Openness on Malaysian Fish Trade Balance

Asymmetric effects of trade openness on malaysian fish trade balance

International fishery access agreements allow fishermen from one country to harvest fish in another country’s waters. We empirically examine why countries sign fisheries access agreements with each other and compare these to the characteristics of countries that choose to undertake international trade. Using a unique global panel dataset, we show that access agreements and fish exports are driven by two key motives: a pattern of comparative advantage in fishing, which depends on fish stocks and fishing capacities; and gravity factors of economic size and distance. Our results suggest that most gravity factors work similarly for the dual pathways of agreements and exports: larger countries that are closer to each other are more likely to sign access agreements or to trade. However, the pattern of advantage is determined differently: source countries with larger fishing capacity are more likely to export fish, while source countries with lower fishing capacity are more likely to sign agreements.

/pdf/international-fisheries-access-agreements-and-trade-2cssn7jesw.pdf

International Fisheries Access Agreements and Trade

There is an ongoing debate over the potential effects of international trade on fishery resources. In this study, we investigate whether the trade in fish and fish products contributed to the decline in a given number of fish species in Turkey. The overall purpose is to test the theoretical findings of Brander and Taylor (1997) who argue that trade openness decreases fish harvest in a small open economy characterized by a regime of open-access to fishery resources. To this end, we estimate a panel data model to measure the effects of trade openness on fish harvests in the case of 57 fish species observed from 1996 to 2009 in Turkey. We estimate Turkish fish harvests in terms of the relative importance of openness to trade as well as in terms of biological characteristics, in addition to economic and technological factors. Estimation results reveal a backward-bending supply curve for the fish harvest. Furthermore, we find that the indicator of openness to trade has a significant and positive impact on the fish harvest. Our results suggest that further openness to trade would put additional pressure on Turkey’s already declining fishery resources.

Fishery Resources and Trade Openness: Evidence from Turkey

The object of this paper is to show, with a simple general equilibrium model, the possibility of an environmental Big Push in a developing country. This concept is used to de…ne a situation where stringent environmental regulations could simultaneously induce traditional sectors to industrialize and to invest in new environmental technology. This regulation takes the form of a national environmental standard and includes the payment of a sectorial fee by manufacturing sectors when this standard is not collectively met. In somes cases, this mech

Environmental Big Push (Very preliminary version)

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Fishery Resources and Trade Openness: Evidence from Turkey

Environmental Big Push (Very preliminary version)