The Theory of International Trade and Unemployment

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Cover for The Theory of International Trade and Unemployment

Prof Paul Oslington underlines the contradiction between the prominence of job losses in political conflict over trade liberalization, and trade economists usually working with full employment models.

This book is a comprehensive treatment of the benchmark competitive trade model with unemployment. It highlights the important linkages between trade and employment, providing analytical tools for participants in debates over trade liberalization. Global economy models, and empirically important cases where factor price equalization fails are considered for the first time.

Questions addressed include:

  • How do trading economies with unemployment respond to shocks such as terms of trade deteriorations, changes in labour market institutions or technological change?
  • How does international migration affect employed and unemployed workers?
  • How are trade patterns and volumes modified by unemployment?
  • Is trade liberalisation always gainful when there is unemployment?
  • How are European and American labour markets linked?
  • How does the entry of newly industrializing countries into manufactured goods markets affect unemployment and wages in different parts of the world?
  • What is the impact of harmonization of international labour standards on different groups in different parts of the world?

This work is a basis for much needed empirical and policy work on trade and unemployment. It will strongly appeal to researchers, students and academics with an interest in international economics and international business. Economists in government and international agencies will also find much to interest them within this book.

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