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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

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