RePEc: Research Papers in Economics · 1986 · 11 citations · 0 references
Social SciencesEconomicsInternational EconomicsInternational TradeLabor EconomicsCapital MarketsCapital MobilityComparative AdvantageTrade LiberalizationUnemploymentWelfare EconomicsCapital Flow LiberalizationCross-border Capital MobilityEquilibrium Real Exchange RateEquilibrium With Real RigiditiesLabor Force ReallocationMarket Liberalization EffectsReal Wage RigidityTrade Welfare Effects
<p>A two-period, two-sector optimizing model is used to study the effects of liberalization of trade and capital movements on the real exchange rate, unemployment, and welfare. The mechanism creating unemployment is assumed to be real wage rigidity caused by</p>