The declining costs of international trade and unemployment
A two-country, two-sector new geography model where workers are imperfectly monitored is used to examine the relationship between falling trade costs and unemployment. It is shown that as trade costs fall over time the world naturally falls into an industrialized core and an agricultural periphery. Globalization has a positive effect on employment in the core in both the short and long term. The periphery suffers employment losses in the short term but can gain in the long term.
Volume (Year): 12 (2003)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RJTE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RJTE20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Krugman, Paul & Venables, Anthony J., 1996.
"Integration, specialization, and adjustment,"
European Economic Review,
Elsevier, vol. 40(3-5), pages 959-967, April.
When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:12:y:2003:i:4:p:337-357. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.