Read the article published in the 2002 NBER Digest. The article discusses a paper by Jeffrey Frankel and Andrew Rose. (The paper has since been published in a peer-reviewed journal
Consider answering the following questions in your report:
- What correlation do the authors find? Why does this correlation alone fail to establish a causal relationship?
- What are some theoretical reasons that trade can reduce pollution?
- What are some key findings of the paper?
- Do the paper’s findings support the idea that trade help with climate change?