Unemployment and the welfare effects of trade policy
In this paper the welfare effects of tariffs and import quotas in the presence of involuntary unemployment are derived and compared. The framework used is the standard model of a competitive small open economy with many goods and factors. Optimum levels of the respective trade policy instruments are derived, as well as welfare increasing reform strategies. In all cases, the labour intensity of the import-competing sectors turns out to be a crucial variable for deriving the welfare effects.
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Volume (Year): 38 (2005)
Issue (Month): 1 (February)
Pages: 194-210
| Handle: | RePEc:cje:issued:v:38:y:2005:i:1:p:194-210 |
| Contact details of provider: | Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4 Web page: http://economics.ca/cje/ Email: More information through EDIRC
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