About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


2015 J. Int'l Com. & Econ. 1 (2015)

handle is hein.journals/jice2015 and id is 1 raw text is: Theory and Empirical Evidence Linking International Trade to Unemployment Rates Web Version: May 2015 Authors1: Maksim Belenkiy and David Riker In this article, we review recent theoretical and empirical studies that link in- ternational trade flows and trade policies to aggregate (economy-wide) unem- ployment rates. The theoretical models demonstrate that there is a complex and often ambiguous relationship between trade and unemployment: whether trade increases or reduces unemployment rates depends in a complicated way on the industry composition of a country's output and on differences in labor market frictions across industries and countries. The empirical studies, on the other hand, offer a story that is simpler and fairly consistent: they generally find that an expansion in international trade reduces a country's aggregate unemployment rate in the long run. Suggested citation: Belenkiy, Maksim and David Riker. Theory and Empirical Evidence Linking International Trade to Unemployment Rates Journal of International Commerce and Economics. Published electronically May 2015. http://www. usitc.gov/journals/jicehome.htm. 1 George Mason University School of Public Policy (Belenkiy) and U.S. International Trade Commission, Office of Economics (Riker). This article represents solely the views of the authors and not the views of the United States International Trade Commission or any of its individual Commissioners. This paper should be cited as the work of the authors only, and not as an official Commission document. Please direct all correspondence to David Riker, Office of Economics, U.S. International Trade Commission, 500 E Street, SW, Washington, DC 20436, or by email to David.Riker@usitc.gov. Abstract