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?
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