TECHNOLOGICAL LEADERSHIP AND SUSTAINABLE GROWTH IN A BILATERAL TRADE MODEL

This paper develops a trade model for a technologically leading country and a developing country that exploits a renewable natural resource. Technology diffuses from the technological leader to the developing country through foreign direct investment (FDI). Alternatively, innovative activities can also be carried out in the developing economy. We prove the existence and uniqueness of an equilibrium path along which both countries grow at the same rate, maintaining the natural-resource stock at a constant level. The saddle-point property for this equilibrium is proved and a sensitivity analysis is carried out. The steady-state growth rate and consumption under both scenarios are compared and the effect of resource abundance analyzed.

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The optimal intertemporal decision on industrial production and harvesting a renewable natural resource

Journal of Economics ◽

10.1007/bf01227543 ◽

1988 ◽

Vol 48 (4) ◽

pp. 375-388 ◽

Cited By ~ 3

Author(s):

Wolfgang J. Ströbele

Keyword(s):

Natural Resource ◽

Industrial Production ◽

Renewable Natural Resource

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Softwood lumber trade and trade restrictions: gravity model.

International trade in forest products: lumber trade disputes, models and examples ◽

10.1079/9781789248234.0142 ◽

2021 ◽

pp. 142-173

Author(s):

Xin-tong Li ◽

Fatemeh Mokhtarzadeh ◽

G. Cornelisvan Kooten

Keyword(s):

Gravity Model ◽

Bilateral Trade ◽

Likelihood Method ◽

Trade Restrictions ◽

Softwood Lumber ◽

Trade Model ◽

Negative Effect ◽

Bilateral Trade Flows ◽

Pseudo Maximum Likelihood ◽

Gravity Trade Model

Abstract A gravity trade model can be used to determine the effects of policy on bilateral trade flows. The gravity model is initially explained and then used to determine the effect that U.S. tariffs have on softwood lumber (SWL) imports from Canada, using information from the 2006 Softwood Lumber Agreement. Quarterly data for seven Canadian and three U.S. regions for the period 2007-2017 are used to estimate a gravity model of SWL trade. The model is subsequently expanded to include Japan and China as separate regions, and then as a combined China-Japan region. The model is estimated using OLS and a Poisson Pseudo-Maximum-Likelihood method for trade quantity and value. Findings indicate that: (1) the imposition of a countervailing and/or anti-dumping duty usually has a negative effect on Canada's physical exports, but not in all cases; (2) the value of softwood lumber trade decreases by 26% on average under a tax/tariff compared with no duties; (3) the tax/tariff has a smaller but still significant impact on Canadian exports when China and Japan are included, as SWL exports are diverted from the U.S.; and, not surprisingly, (4) duties affect the value of lumber exports to a much greater extent than quantity.

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Modeling bilateral forest products trade.

International trade in forest products: lumber trade disputes, models and examples ◽

10.1079/9781789248234.0043 ◽

2021 ◽

pp. 43-82

Author(s):

Craig M. T. Johnston ◽

Brad Stennes ◽

G. Cornelisvan Kooten

Keyword(s):

Bilateral Trade ◽

Forest Products ◽

The United States ◽

Programming Models ◽

Trade Barriers ◽

Trade Restrictions ◽

Price Equilibrium ◽

Softwood Lumber ◽

Trade Model ◽

Spatial Price

Abstract The focus in this chapter is on the development of mathematical programming models used to model bilateral forest products trade. Theoretical outlines are provided of a multi-region, single product trade model and of an integrated, multi-region, multi-product trade model. The objective function and constraints are described mathematically, while the analysis takes into account horizontal and vertical chains and the need to calibrate the model using observed trade flows. Data sources are discussed, and the GAMS code is provided for the uncalibrated and calibrated versions of the model. The Canada-U.S. softwood lumber dispute is the raison d'être for much applied work in modeling forest products trade, especially on Canada's side. In this chapter, we examine several spatial price equilibrium (SPE) trade models that are currently used to investigate the implications of trade barriers imposed on Canadian exports of softwood lumber to the United States. The reason we consider bilateral trade is so that we can determine the impacts of trade restrictions on various regions in North America. We begin in the next section by specifying a general but vertically integrated SPE trade model.

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Effects of Soil Contamination on the Selection of Remediation Method

Handbook of Research on Advancements in Environmental Engineering - Advances in Environmental Engineering and Green Technologies ◽

10.4018/978-1-4666-7336-6.ch008 ◽

2015 ◽

pp. 200-227 ◽

Cited By ~ 2

Author(s):

Ivica Kisić

Keyword(s):

Soil Contamination ◽

Natural Resources ◽

Human Activity ◽

Natural Resource ◽

Contaminated Soil ◽

Natural Activity ◽

Harmful Substances ◽

The Many ◽

Renewable Natural Resource ◽

Selection Of

Soil is a thin (up to 50cm) loose top layer of the Earth's surface, located between the lithosphere and atmosphere. Total available land area on Earth is limited, and the soil is extremely important, and in one generation it is a non-renewable natural resource. Unfortunately, nowadays the soil is, next to water, one of the most endangered natural resources. Among the many processes of soil damage, which is not being addressed at this point, is the growing importance placed on soil contamination. Contaminated soil is the soil in which human or natural activity has increased the content of harmful substances whose concentrations may be harmful to human activity, that is, for the production of plants or animals.

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Optimal Exploitation of a General Renewable Natural Resource under State and Delay Constraints

Mathematics ◽

10.3390/math8112053 ◽

2020 ◽

Vol 8 (11) ◽

pp. 2053

Author(s):

M’hamed Gaïgi ◽

Idris Kharroubi ◽

Thomas Lim

Keyword(s):

Differential Equation ◽

Natural Resource ◽

Market Price ◽

Programming Approach ◽

Infinite Time ◽

Delay Constraints ◽

Dynamic Programming Approach ◽

Brownian Process ◽

Renewable Natural Resource ◽

The Value Function

In this work, we study an optimization problem arising in the management of a natural resource over an infinite time horizon. The resource is assumed to evolve according to a logistic stochastic differential equation. The manager is allowed to harvest the resource and sell it at a stochastic market price modeled by a geometric Brownian process. We assume that there are delay constraints imposed on the decisions of the manager. More precisely, starting harvesting order and selling order are executed after a delay. By using the dynamic programming approach, we characterize the value function as the unique solution to an original partial differential equation. We complete our study with some numerical illustrations.

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Is Sino-Africa Bilateral Trade More than Resource Focused? The Rhetoric and the Reality

African and Asian Studies ◽

10.1163/15692108-12341436 ◽

2019 ◽

Vol 18 (4) ◽

pp. 362-394

Author(s):

Aye Alemu ◽

Wenqing Zhang

Keyword(s):

Natural Resources ◽

Natural Resource ◽

Bilateral Trade ◽

Rapid Expansion ◽

Contributing Factors ◽

African Countries ◽

Factors Influencing ◽

Oil Exports ◽

The Empirical Analysis ◽

Significant Factors

Abstract This study uses an augmented dynamic gravity model to identify the main contributing factors influencing bilateral trade between China and 46 African countries in general and to test whether Sino-Africa bilateral trade is more than resource focused in particular. Natural resource was captured by “oil exports” and “ores & metal exports,” and the empirical analysis verifies only “oil” not “ores & metals” to significantly influence the growing Sino-Africa bilateral trade. Thus, the empirical result partially supports the widely held view that natural resources are critical to bilateral trade between China and African countries. However, it is not true that Chinese engagement in Africa is exclusively due to natural resources as always portrayed. Apart from the oil factor, some other significant factors for the growing bilateral trade are identified. The study indicates there is a huge opportunity and potential for rapid expansion of Sino-Africa bilateral trade that is mutually beneficial.

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Behaviour of non-renewable natural resource firms under uncertainty

Energy Economics ◽

10.1016/0140-9883(94)90013-2 ◽

1994 ◽

Vol 16 (1) ◽

pp. 9-21 ◽

Cited By ~ 1

Author(s):

Michael J Mueller

Keyword(s):

Natural Resource ◽

Renewable Natural Resource

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Liability of Middleness Revisited: The Advantages for Mid-Sized Competitors in Renewable Natural Resource Industries

Management and Organization Review ◽

10.1017/mor.2018.54 ◽

2019 ◽

Vol 15 (4) ◽

pp. 737-772 ◽

Cited By ~ 1

Author(s):

Alfonso Cruz ◽

Tomas Reyes ◽

Roberto Vassolo

Keyword(s):

Product Differentiation ◽

Natural Resource ◽

Product Line ◽

Capital Investments ◽

Market Selection ◽

Firm Level ◽

Line Scale ◽

The Us ◽

Renewable Natural Resource ◽

Curvilinear Effect

ABSTRACTSize is an important antecedent of firm survival, and several studies theoretically sustain and empirically support a ‘liability of middleness’. Indeed, it is widely believed that companies should act strategically to either become large or remain small and occupy a niche position, because mid-sized firms face the strongest market selection pressures. This study challenges that logic in renewable natural resource industries. Measuring size as product-line scale and firm-level portfolio breadth, we argue that in industries characterized by cost competition, the lack of product differentiation, large capital investments, and sharp price oscillation, scale and breadth have a curvilinear effect on survival that favors mid-sized firms rather than penalizing them. An empirical analysis of the US pulp and paper (P&P) industry over the period 1970–2000 strongly supports our arguments. This study is particularly relevant for emerging economies, in which natural resource industries represent an important portion of the total economic activity.

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