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Energy Abundance, Trade and Specialization

Author

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  • Reyer Gerlagh
  • Nicole A. Mathys
  • Thomas O. Michielsen

Abstract

Do countries with large energy endowments have larger energy-intensive sectors? We answer this question empirically using a panel with 14 high-income countries from Europe, America and Asia and 10 broad sectors, from 1970 to 1997. Energy-abundant countries have 7 to 10 percent higher employment and 13 to 17 percent higher net exports per value added in energy-intensive sectors vis-a-vis otherwise comparable countries. Conversely, energy-scarce countries specialize in non-energy-intensive sectors.

Suggested Citation

  • Reyer Gerlagh & Nicole A. Mathys & Thomas O. Michielsen, 2015. "Energy Abundance, Trade and Specialization," The Energy Journal, , vol. 36(3), pages 235-246, July.
    • Handle: RePEc:sae:enejou:v:36:y:2015:i:3:p:235-246
    DOI: 10.5547/01956574.36.3.rger
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    References listed on IDEAS

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    1. Abay Mulatu & Reyer Gerlagh & Dan Rigby & Ada Wossink, 2010. "Environmental Regulation and Industry Location in Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(4), pages 459-479, April.
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    Cited by:

    1. Abay Mulatu, 2017. "The Structure of UK Outbound FDI and Environmental Regulation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 65-96, September.
    2. Erik Hille & Patrick Möbius, 2019. "Environmental Policy, Innovation, and Productivity Growth: Controlling the Effects of Regulation and Endogeneity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1315-1355, August.
    3. Dechezleprêtre, Antoine & Gennaioli, Caterina & Martin, Ralf & Muûls, Mirabelle & Stoerk, Thomas, 2022. "Searching for carbon leaks in multinational companies," Journal of Environmental Economics and Management, Elsevier, vol. 112(C).
    4. Bajo-Buenestado, Raúl, 2018. "Relationship-specificity, incomplete contracts, and the pattern of trade: A comment on the role of natural resources," Energy Economics, Elsevier, vol. 75(C), pages 410-422.
    5. Robert J R Elliott & Puyang Sun & Tong Zhu, 2021. "Energy Abundance, the Geographical Distribution of Manufacturing, and International Trade," Discussion Papers 21-16, Department of Economics, University of Birmingham.

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    More about this item

    Keywords

    Trade; Energy; Factor abundance;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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