Publication Type
Journal Article
Version
publishedVersion
Publication Date
1994
Abstract
This paper develops a (stylized Asia-America) Heckscher-Ohlin world economy in which the equilibrium rate of unemployment is endogenous. We examine the impact of various economic shocks on unemployment in the global economy. Harrod-neutral or Hicks-neutral technical progress across all industries in Asia leads to a terms of trade improvement for America but raises America's unemployment rate. Introducing a third country such as the block of former socialist economies results in higher unemployment for both Asia and America. Protection in America lowers American equilibrium unemployment but raises Asia's unemployment.
Discipline
Economics
Research Areas
Applied Microeconomics
Publication
International Economic Journal
Volume
8
Issue
2
First Page
13
Last Page
32
ISSN
1016-8737
Identifier
10.1080/10168739400080010
Citation
HOON, Hian Teck.
International trade and the equilibrium rate of unemployment in a Heckscher-Ohlin world economy. (1994). International Economic Journal. 8, (2), 13-32.
Available at: https://ink.library.smu.edu.sg/soe_research/433
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1080/10168739400080010