Marginal Intra-industry Trade and Adjustment Costs in Labour Market

Nuno Carlos Leitao, Bogdan Dima and Cristea Stefana Dima

No 150370, Economy and Society from Fondazione Eni Enrico Mattei (FEEM)

Abstract: 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.

Keywords: Labor; and; Human; Capital (search for similar items in EconPapers)
Pages: 13
Date: 2013-04
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemso:150370

DOI: 10.22004/ag.econ.150370

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