General-equilibrium implications of international product-market competition for jobs and wages
Publication Type
Journal Article
Publication Date
1-2001
Abstract
This paper extends the insight that trade increases international product-market competition to show that in a world with an endogenous natural rate of unemployment, countries can benefit through a decline in the natural rate. When the number of firms in the integrated world market is greater than the number of firms in each economy in autarky, all trading nations in a world of identical factor proportions experience a decline in equilibrium unemployment. When factor proportions differ, equilibrium unemployment must fall in the labor-abundant country but may rise or decline in the capital-abundant country.
Discipline
Economics | International Economics
Research Areas
Applied Microeconomics
Publication
Oxford Economic Papers
Volume
53
Issue
1
First Page
138
Last Page
156
ISSN
0030-7653
Identifier
10.1093/oep/53.1.138
Publisher
Oxford University Press
Citation
HOON, Hian Teck.
General-equilibrium implications of international product-market competition for jobs and wages. (2001). Oxford Economic Papers. 53, (1), 138-156.
Available at: https://ink.library.smu.edu.sg/soe_research/94
Copyright Owner and License
Publisher
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/10.1093/oep/53.1.138