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Author:Copeland, B.
Taylor, S.
Title:Trade, spatial separation, and the environment
Journal:Journal of International Economics
1999 : FEB, VOL. 47:1, p. 137-168
Index terms:TRADE
SPATIAL ECONOMICS
ENVIRONMENT
Language:eng
Abstract:The authors develop a simple two-sector dynamic model to show how pollution can provide a motive for trade by spatially separating incompatible industries. The authors assume that the production of "Smokestack" manufacturers generates pollution, which lowers the productivity of an environmentally sensitive sector ("Farming"). Two identical, unregulated countries will gain from trade if the share of world income spent on Smokestack goods is high.
SCIMA record nr: 194963
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