부산대학교 도서관

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-9396.2008.00800.x Byline: Sibel Sirakaya (1), Stephen J. Turnovsky (2), Nedim M. Alemdar (3) Abstract: Abstract This paper examines linkages between international trade, environmental degradation, and economic growth in a dynamic North-South trade game. Using a neoclassical production function subject to an endogenously improving technology, North produces manufactured goods by employing labor, capital, and a natural resource that it imports from South. South extracts the resource using raw labor, in the process generating local pollution. We study optimal regional policies in the presence of local pollution and technology spillovers from North to South under both non-cooperative and cooperative modes of trade. Non-cooperative trade is inefficient due to stock externalities. Cooperative trade policies are efficient and yet do not benefit North. Both regions gain from improved productivity in North and faster knowledge diffusion to South regardless of the trading regime. Author Affiliation: (1)Departments of Economics and Statistics, and Center for Statistics and Social Sciences, University of Washington, USA (2)University of Washington, USA (3)Bilkent University, Ankara, Turkey Article note: Sirakaya: Departments of Economics and Statistics, and Center for Statistics and Social Sciences, University of Washington, Box 354320, Seattle, WA 98195, USA. Turnovsky (corresponding author): University of Washington, Box 3533330, Seattle, WA 98195, USA. E-mail: sturn@u.washington.edu. Alemdar: Bilkent University, 06800 Bilkent, Ankara, Turkey.