Abstract

Simple “accounting” methods have been used to estimate the effects of changes in trade on sectoral employment. Using an applied general equilibrium (AGE) model with Canadian data for 1972 and 1980, this article examines an accounting method first employed in a Brookings study by Charles Frank. The results suggest that despite the criticism it has received, this method provides a reasonable way of assessing the change in employment attributable to changes in imports.

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