North-South Trade And Environment: Role of Relative Factor Intensity

Since 1970s environment has emerged as a major subject of intensive international care because the world environment is a composite global resource, sustaining life for all of us and hence it needs to be preserved. This work is a preliminary step to examine the pattern of trade and environmental effects in a North–South framework through a standard general equilibrium model and show new way to analyze the traditional trade theories.It will motivate further analysis of Ricardian and Heckscher-Ohlin trade model in the context of North-South trade pattern specially pollution haven and relocation of dirty industries worldwide.