The World Trade Organization (WTO) is among those institutions that advocate free trade in goods, service and capital
among nations. This view is not shared universally, however, especially when there are important natural resource, environmental and
labor issues at stake. In fact, some countries discourage the exportation of natural resource goods, while others encourage such trade.
This paper examines possible explanations for these differences, focusing on the roles of (a) the "taste" for the resource goods in the
domestic economy and (b) diminishing returns to labor in the non-resource sectors.
Emami, A. and R.S. Johnston. International Trade in Resource Goods and Returns to Labor in the Non-Resource Sectors. In: Microbehavior and Macroresults:Proceedings of the Tenth Biennial Conference of the International Institute ofFisheries Economics and Trade, July 10-14, 2000, Corvallis, Oregon, USA.Compiled by Richard S. Johnston and Ann L. Shriver. InternationalInstitute of Fisheries Economics and Trade (IIFET), Corvallis, 2001.