How an Export Boom Affects Unemployment

Does trade affect the equilibrium rate of unemployment? To answer this question, we propose a small open economy model that incorporates realistic features of labour markets. The model predicts that a sustained improvement in the terms of trade lowers unemployment. We test this prediction for the ca...

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Bibliographic Details
Main Authors: Gaston, Noel, Rajaguru, Gulasekaran
Format: Journal Article
Published: Elsevier BV * North-Holland 2013
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/9873