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| Author: | Arnold, L. G. |
| Title: | On the growth effects of North-South trade: the role of labor market flexibility |
| Journal: | Journal of International Economics
2002 : DEC, VOL. 58:2, p. 451-466 |
| Index terms: | Trade Labour markets Flexibility Unemployment |
| Language: | eng |
| Abstract: | The author examines the impact of intensified North-South intra-industry trade from a growth theoretic perspective. He incorporates unemployment into Helpman's model of North-South trade (Econometrica 1993, p. 1247). It is shown that the shape of the relation between the rate of imitation and the steady-state growth rate depends on the degree of labour market flexibility, as measured by the outflow rate from unemployment. |
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