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Creative destruction and unemployment in an open economy model

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  • Ignat Stepanok

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.

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  • Ignat Stepanok, 2016. "Creative destruction and unemployment in an open economy model," Canadian Journal of Economics, Canadian Economics Association, vol. 49(3), pages 931-948, August.
    • Handle: RePEc:cje:issued:v:49:y:2016:i:3:p:931-948
    DOI: 10.1111/caje.12219
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    Cited by:

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    3. Davis, Colin & Hashimoto, Ken-ichi, 2022. "Productivity growth, industry location patterns and labor market frictions," Regional Science and Urban Economics, Elsevier, vol. 97(C).
    4. Dinopoulos, Elias & Grieben, Wolf-Heimo & Şener, Fuat, 2023. "A Policy Conundrum: Schumpeterian Growth or Job Creation?," Economic Modelling, Elsevier, vol. 126(C).
    5. Finn Martensen, 2013. "Globalization, Unemployment, and Product Cycles: Short- and Long-Run Effects," Working Paper Series of the Department of Economics, University of Konstanz 2013-16, Department of Economics, University of Konstanz.
    6. Buhari Doğan, 2016. "The Effects of Globalization on Employment: Bounds Test Approach in Turkey Sample," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(10), pages 620-633, October.
    7. Grieben, Wolf-Heimo & Şener, Fuat, 2017. "Wage bargaining, trade and growth," Research in Economics, Elsevier, vol. 71(3), pages 564-587.
    8. Ramesh Chandra Das & Kamal Ray, 2020. "Does Globalisation Influence Employment? Empirical Investigation on Individual as well as Panel of South Asian Countries," Review of Market Integration, India Development Foundation, vol. 12(1-2), pages 7-34, August.

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    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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