Publication Type
Journal Article
Version
publishedVersion
Publication Date
6-2024
Abstract
We propose a new welfare effect of trade surplus. Guided by insight from several fields in economics, we provide evidence that an increase in a country's trade surplus alters the unit shipping costs for its trade and the composition of its imports in ways that induce more pollution in the country in equilibrium. This new form of welfare loss of trade imbalance has not been accounted for in the existing international economics literature
Keywords
Trade surplus, Shipping costs, Pollution, Trade imbalance, International economics literature, Economic equilibrium
Discipline
Econometrics | Economics | International Economics
Research Areas
Applied Microeconomics; Macroeconomics; International Economics
Publication
Journal of International Money and Finance
Volume
144
ISSN
0261-5606
Identifier
10.1016/j.jimonfin.2024.103090
Publisher
Elsevier
Citation
LEE, Jungho; WEI, Shang-jin; and XU, Jianhuan.
Trade imbalance, heavy goods, and pollution. (2024). Journal of International Money and Finance. 144,.
Available at: https://ink.library.smu.edu.sg/soe_research/2779
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jimonfin.2024.103090