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Recycling and International Trade Theory

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  • Kazunori Tanigaki

Abstract

Recently recycling and the production of secondary materials have increased in many countries. However, there is little analysis examining the effects of recycling on comparative advantage, trade, and welfare. In a model with recycling sectors, the author examines whether the Rybczynski theorem is valid, how the price effects are modified, how a recycling subsidy changes the production structure and comparative advantage. It is found that demand has an effect on final goods production and comparative advantage since consumption goods are transformed into recycling inputs.

Suggested Citation

  • Kazunori Tanigaki, 2007. "Recycling and International Trade Theory," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 1-12, February.
    • Handle: RePEc:bla:rdevec:v:11:y:2007:i:1:p:1-12
    DOI: 10.1111/j.1467-9361.2007.00361.x
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