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Is Trade Good or Bad for the Environment? Sorting Out the Causality

Frankel, Jeffrey A., Rose, Andrew K.·2005·Review of Economics and Statistics

Abstract

We seek to contribute to the debate over globalization and the environment by asking: What is the effect of trade on a country's environment, for a given level of GDP? We take specific account of the endogeneity of trade, using exogenous geographic determinants of trade as instrumental variables. We find that trade tends to reduce three measures of air pollution. Statistical significance is high for concentrations of SO2, moderate for NO2, and lacking for particulate matter. Although results for other environmental measures are not as encouraging, there is little evidence that trade has a detrimental effect on the environment.

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Metadata

Authors
Frankel, J. A., & Rose, A. K.
Venue
Review of Economics and Statistics
Published
2005-02
Volume
87
Issue
1
Pages
85-91
ISSN
  • 0034-6535 (ISSN-L)
  • 1530-9142
OpenAlex
W3022408888
Cited by
1,001
References
4
FWCI
48.47
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Is Trade Good or Bad for the Environment? Sorting Out the Causality. https://app.cochat.ai/papers/10.1162/0034653053327577
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Frankel, J. A., & Rose, A. K. (2005). Is Trade Good or Bad for the Environment? Sorting Out the Causality. Review of Economics and Statistics. https://doi.org/10.1162/0034653053327577

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.