We first review the literature pertaining to the protection of the modern sector in developing countries (DCs). We then discuss the nexuses between protection, economic dualism, and optimal environmental policy in DCs. Next, in the theoretical part of the paper, we construct a dynamic model of...

Free trade commodities has often been considered to lead to the optimum allocation of resources between countries. If factor returns are not equalized by such trade, further gains can be obtained by allowing national factors access to world markets. But if technology, in the form of blueprints,...