Premium
Recycling and International Trade Theory
Author(s) -
Tanigaki Kazunori
Publication year - 2007
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/j.1467-9361.2007.00361.x
Subject(s) - comparative advantage , economics , production (economics) , subsidy , consumption (sociology) , welfare , trade theory , intermediate good , international economics , microeconomics , international trade , trade barrier , market economy , social science , sociology
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.