ABSTRACT

The effects of the liberalization of agricultural trade on the environment have been a subject of considerable discussion in recent years. The opening up of trade results in a reallocation of productive resources among agricultural sectors and subsectors. Trade leads to changes in relative output prices, and hence in the composition of output. Changes in the relative prices of inputs resulting from the opening of trade in turn lead to changes in technology, that is, the extent and intensity of use of inputs, including chemical and mechanical inputs, and so on.