International trade and macroeconomic dynamics with labor market frictions

• 成果类型: Article
• 署名作者: Cacciatore, Matteo
• 署名单位: Universite de Montreal; HEC Montreal
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2014.01.008
• 发表日期: 2014
• 页码: 17-30
• 关键词: Trade integration; search and matching; Firm entry; heterogeneous firms; Business cycle comovement

摘要

This paper studies how labor market frictions affect the consequences of trade integration in a two-country dynamic stochastic general equilibrium model with heterogeneous firms and endogenous producer entry. Two main results emerge. First, trade integration is beneficial for welfare by inducing higher productivity, but unemployment can temporarily rise during the transitional adjustment. labor market rigidities reduce gains from trade, even though they can mitigate short-run employment losses. Second, consistent with the data, the model predicts that stronger trade linkages lead to increased business cycle synchronization. The strength of this effect, however, depends on the labor market characteristics of the integrating partners. (C) 2014 Elsevier B.V. All rights reserved.