Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/68612 
Authors: 
Year of Publication: 
2013
Series/Report no.: 
Kiel Working Paper No. 1820
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
I develop a model of endogenous economic growth and search and matching frictions in the labor market. I study the effect of trade liberalization between two identical economies on unemployment. I solve for two versions of the growth model, the first one where trade liberalization has only a temporary effect on growth, a semi-endogenous growth model. In the second version trade liberalization has a permanent effect on growth, a fully endogenous growth model. I show that in both versions trade liberalization has a steady state effect on unemployment that can be either negative or positive depending on parameters.
Subjects: 
creative destruction
unemployment
trade liberalization
JEL: 
O41
J63
F16
Document Type: 
Working Paper

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