1996

Trade theory and natural resources

image of Trade theory and natural resources

This section looks at key features of natural resources trade from a theoretical perspective. Does trade provide an efficient mechanism for ensuring access to natural resources? What is the impact of trade on finite or exhaustible resources, including under conditions of “open access” where there is a common ownership of – and access to – a natural resource? Is there a relationship between trade and its impact on the environment? Does trade reinforce or reduce problems associated with resource dominance in certain economies? And how does trade affect resource price volatility? These broad questions are addressed by surveying the relevant theoretical literature on the determinants and effects of trade in natural resources.

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