Trade liberalization and self-employment: evidence from 36 OECD countries

Abstract

This study contributes to the International Trade literature by examining the impact of trade liberation on self-employment, an area that has received less attention in previous research. Using empirical analysis on a panel dataset spanning 36 OECD countries from 1970 to 2015, the study investigates the core determinants and mechanism driving self-employment during periods of trade market opening. The findings consistently support the hypothesis that trade openness leads to an increase in both the unemployment rate and self-employment in OECD countries.