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Licensed Unlicensed Requires Authentication Published by De Gruyter September 9, 2006

Corruption, Environmental Resources, and International Trade

Priya Ranjan and Baishali Bakshi


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.

Published Online: 2006-9-9

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