Intra-industry trade and adjustment in Malaysia: puzzling evidence

Marius Brülhart and Michael Thorpe

Applied Economics Letters, 2000, vol. 7, issue 11, 729-733

Abstract: The structure of Malysia's trade expansion over the high-growth period 1970-1994 and its implications for labour-market adjustment is examined. An econometric analysis of trade and employment data suggests that intra-industry trade is related with relatively large inter-industry payroll changes. Results therefore cast doubt over the widely held smooth-adjustment hypothesis of intra-industry trade.

Date: 2000
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DOI: 10.1080/135048500421368

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