Creative destruction and unemployment in an open economy model

Abstract

"I develop a model of endogenous economic growth and search and matching frictions in the labour market. I study the effect of trade liberalization between two identical economies on long-run unemployment and show that bilateral trade liberalization has a steady state effect on unemployment that is negative for countries with a relatively larger R&D sector and positive for countries with a smaller R&D sector." (Author's abstract, IAB-Doku) ((en))

Cite article

Stepanok, I. (2016): Creative destruction and unemployment in an open economy model. In: Canadian Journal of Economics, Vol. 49, No. 3, p. 931-948. DOI:10.1111/caje.12219