Trade Policies and Equilibrium Unemployment

Ravi Batra and Hamid Beladi

Manchester School, 1999, vol. 67, issue 4, 545-556

Abstract: In this paper we develop a simple general equilibrium model of trade to analyze the impact of tariffs and technical progress on the equilibrium rate of unemployment. We demonstrate that if a country imposes a tariff its equilibrium rate of unemployment is likely to rise, whereas the impact of technology on equilibrium unemployment depends on the labor intensity of the two sectors.

Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:bla:manchs:v:67:y:1999:i:4:p:545-556

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