Theoretical analysis of international trade with exhaustible natural resources

Thesis/Dissertation · Sun Jan 01 04:00:00 EST 1984

OSTI ID:6003654

Barney, Jr, L D

This dissertation focuses upon the economics of international trade in the presence of exhaustible natural resources. Resources and trade present an abundance of interesting questions, many of which have not yet been addressed in the current body of literature. This dissertation specifically examines two aspects of international trade and exhaustible resources: 1) the effects of tariffs, export taxes and discovery of new resource reserves in a world of perfect certainty; and 2) a small price-taking country making plans in a world of uncertain resource price paths. The optimal resource extraction plan under uncertainty is compared with the solution forthcoming when price is known with certainty to attain the mean price path. Reserve discovery in the resource rich country will always change the terms of trade in favor of the raw material importer. Welfare analysis reveals that utility in the resource poor country will be increased as a result of the favorable terms of trade effect. Interestingly, it is unclear whether the resource rich economy gains or loses as a result of a discovery in its own country. The second major topic of this dissertation involved resource price uncertainty. In the absence of international borrowing and lending, it was shown that resource price uncertainty leads to a faster rate of resource depletion than would occur in a world of perfect foresight.

• OSTI ID: 6003654
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
290400* -- Energy Planning & Policy-- Energy Resources
DEVELOPING COUNTRIES
ECONOMIC ANALYSIS
ECONOMICS
GLOBAL ASPECTS
PRICES
RESOURCE DEPLETION
RESOURCE DEVELOPMENT
TRADE