Abstract
We analyze how changes in trade openness are related to induced technological innovations that are not only GDP increasing but also pollution saving. Our model includes by-products of carbon dioxide and sulfur dioxide emissions. We estimate a directional distance function for 76 countries over the period 1963-2000 to measure exogenous and trade-induced technological change. On average, we find substantial trade-induced technological progress, and its magnitude is about one third of the overall technological change. The trade-induced technological changes, however, are GDP reducing and pollution increasing. Empirically, we find that increased trade openness correlates to increased pollution.
Original language | English |
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Pages (from-to) | 721-732 |
Number of pages | 12 |
Journal | Economic Modelling |
Volume | 26 |
Issue number | 3 |
DOIs | |
Publication status | Published - May 1 2009 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics