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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Friebel, Guido / Mendola, Mariapia / Requate, Till / Tsui, Kevin / Wichardt, Philipp / Zulehner, Christine

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Corruption, Environmental Resources, and International Trade

Priya Ranjan1 / Baishali Bakshi2

1University of California, Irvine,

2

Citation Information: Topics in Economic Analysis & Policy. Volume 6, Issue 1, ISSN (Online) 1538-0653, DOI: 10.2202/1538-0653.1515, September 2006

Publication History

Published Online:
2006-09-09

Abstract

It is shown how corruption in the management of environmental resources can give rise to a comparative advantage in environment-intensive industries. International trade, in this setting, is not necessarily welfare improving. When corruption responds endogenously to the over-exploitation of resources, it is possible for international trade to generate forces that improve resource management by reducing corruption. Therefore, in this case trade could provide gains in addition to the usual gains.

Keywords: corruption; environment; trade

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