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We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment effects of trade liberalization. We show that the...
Persistent link: https://www.econbiz.de/10005013939
world markets. To explain higher protection in sectors where a large share is imported from these countries, we extend the … ‘protection for sale’ model to allow for different degrees of substitutability between domestically produced and imported … varieties. The extension suggests that higher levels of protection towards Chinese goods can be explained by high …
Persistent link: https://www.econbiz.de/10005765925
The number of preferential trade agreements has greatly increased over the past two decades, yet most existing bilateral arrangements take the form of free trade areas, and less than ten percent can be considered to be fully fledged customs unions. This paper develops a political economy model...
Persistent link: https://www.econbiz.de/10005406001
We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention...
Persistent link: https://www.econbiz.de/10008583684
When the world economy was recently hit by a severe recession, governments all over the world reacted by initiating stimulus packages. Some countries (among them, most notably, China and the US) tried to put special emphasis on their home industries by including “Buy local” clauses into the...
Persistent link: https://www.econbiz.de/10008671694