With global specialization and trade, countries make directly but also indirectly use of the environment via traded goods. Based on the theory of comparative advantages, the Heckscher-Ohlin-Vanek approach, we are using the Ecological Footprint as a broad measure of environmental use because its...

This paper explores how the emergence of the “new regionalism” and a surge in direct investment relate to each other and to the theory of international trade. Reform in the East and South—the most significant economic event of our era—plays a central role. Countries anxious to implement...