Marginal intra-industry trade and adjustment costs in labour market

Arbeitspapier

The objective of this study is to provide some empirical evidences on the existence of labor market adjustments according to smooth adjustment hypothesis (SAH) under the impact of intra-industry trade (IIT) considering the Portuguese case over a time span between 1995 and 2006. The main methodological issue of this study consists in showing that it is preferable to use the GMM-System approach with orthogonal transformation of data. The key outcome consists in highlighting a negative linkage between marginal intra-industry trade and the amplitude of employment changes for this particular market. In addition, we find a negative correlation between changes of employment and changes in domestic consumption. Moreover, the relationship between growth of productivity and market structure is according to smooth adjustment hypothesis.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 39.2013

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
• Subject: Intra-Industry Trade ; Adjustment Costs ; Portugal ; Labour Market

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Leitão, Nuno Carlos ; Dima, Bogdan ; Stefana, Dima Cristea
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/74811
• Last update: 10.03.2025, 11:44 AM CET