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Export Bans, Environmental Protection, and Unemployment

Author

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  • Judith M. Dean
  • Shubhashis Gangopadhyay

Abstract

This study investigates the case for an export ban on intermediate goods which generate environmental damage. Since export restrictions on intermediates have long been advocated as a method of stimulating domestic industries in developing countries, we consider whether the case for an export ban is strengthened or weakened by the presence of unemployment in the industrial sector. We find that, in the short run, an export restriction worsens unemployment, thus weakening the case for a ban. In the long run, however, the results are reversed. If the environmental problem is severe, unemployment has a negligible impact on the case for an export ban.

Suggested Citation

  • Judith M. Dean & Shubhashis Gangopadhyay, 1997. "Export Bans, Environmental Protection, and Unemployment," Review of Development Economics, Wiley Blackwell, vol. 1(3), pages 324-336, October.
    • Handle: RePEc:bla:rdevec:v:1:y:1997:i:3:p:324-336
    DOI: 10.1111/1467-9361.00022
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    Cited by:

    1. Pierre-Louis Vézina, 2015. "Illegal trade in natural resources: Evidence from missing exports," International Economics, CEPII research center, issue 142, pages 152-160.
    2. Ichiroh Daitoh, 2003. "Environmental Protection and Urban Unemployment: Environmental Policy Reform in a Polluted Dualistic Economy," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 496-509, August.
    3. repec:oxf:wpaper:oxcarre-research-paper-139 is not listed on IDEAS
    4. Sheng-Huei Ko & Kuo-Hsing Kuo & Cheng-Te Lee & Chen Fang, 2017. "Environmental Tax And Return Urban–Rural Migration," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 447-458, June.
    5. Gilbert, John & Wahl, Thomas, 2001. "Export restrictions, urban unemployment, and the location of processing activities," Economics Letters, Elsevier, vol. 71(1), pages 105-110, April.
    6. Li, Xiaochun & Zhou, Jing, 2015. "Environmental effects of remittance of rural–urban migrant," Economic Modelling, Elsevier, vol. 47(C), pages 174-179.
    7. Arief Anshory Yusuf, 2005. "Who Pay for the Cleaner Air? Distributional Impact of Environmental Policy in a Dualistic Economy," Working Papers in Economics and Development Studies (WoPEDS) 200502, Department of Economics, Padjadjaran University, revised Feb 2005.
    8. Nalin Kishor & Muthukumara Mani & Luis Constantino, 2004. "Economic and Environmental Benefits of Eliminating Log Export Bans – The Case of Costa Rica," The World Economy, Wiley Blackwell, vol. 27(4), pages 609-624, April.

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