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Akihiho Yanase
''Free trade may save a renewable resource from exhaustion''
( 2013, Vol. 33 No.1 )
This study considers a small open economy in which two tradable final goods are produced by using a non-tradable resource good, which has an open-access property, as an input as well as a primary factor. If the intrinsic growth rate of the resource is relatively low, there may be no non-trivial steady state or multiple steady states. This implies that, by opening international trade, the economy can escape from the risk of complete depletion of the resource.
Keywords: International trade, Open-access renewable resources, Intermediate good, Multiple steady states, Resource depletion
JEL: F1 - Trade: General
Q2 - Renewable Resources and Conservation: General
Manuscript Received : Nov 06 2012 Manuscript Accepted : Jan 25 2013

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