Environmental Economics and Policy Studies

, Volume 16, Issue 4, pp 305–324 | Cite as

The effect of trade openness on deforestation: empirical analysis for 142 countries

  • Tetsuya Tsurumi
  • Shunsuke Managi
Research Article Progress in Sustainable Development Economics


This study explores the effect of trade openness on deforestation. Previous studies do not find a clear effect of trade openness on deforestation. We use updated data on the annual rate of deforestation for 142 countries from 1990 to 2003, treat trade and income as endogenous, and take into consideration an adjustment process by applying a dynamic model. We find that an increase in trade openness increases deforestation for non-OECD countries while slowing down deforestation for OECD countries. There is a possibility that both capital–labor and environmental-regulation effects have a negative impact on deforestation in developing countries, whereas the opposite holds in developed countries.


Trade openness Environment Comparative advantage Deforestation 

JEL Classification

Q23 Q56 Q58 



We are grateful to the editor and the anonymous reviewer for valuable comments and suggestions.


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Copyright information

© Springer Japan 2012

Authors and Affiliations

  1. 1.Faculty of Policy StudiesNanzan UniversitySetoJapan
  2. 2.Graduate School of Environmental StudiesTohoku UniversitySendaiJapan
  3. 3.Institute for Global Environmental StrategiesHayamaJapan

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