Marginal Intra-Industry Trade and Adjustment Costs in Labour Market

13 Pages Posted: 15 May 2013

See all articles by Nuno Carlos Leitão

Nuno Carlos Leitão

affiliation not provided to SSRN

Bogdan Dima

West University of Timisoara - Department of Finance

Stefana Maria Dima (Cristea)

Vasile Goldiş Western University of Arad

Date Written: May 14, 2013

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: Intra-Industry Trade, Adjustment Costs, Portugal, Labour Market

JEL Classification: F12, C33

Suggested Citation

Leitão, Nuno Carlos and Dima, Bogdan and Dima (Cristea), Stefana Maria, Marginal Intra-Industry Trade and Adjustment Costs in Labour Market (May 14, 2013). FEEM Working Paper No. 39.2013. Available at SSRN: https://ssrn.com/abstract=2264747 or http://dx.doi.org/10.2139/ssrn.2264747

Nuno Carlos Leitão (Contact Author)

affiliation not provided to SSRN

Bogdan Dima

West University of Timisoara - Department of Finance ( email )

str. Pestalozzi, nr. 16
300115 Timisoara
Romania

Stefana Maria Dima (Cristea)

Vasile Goldiş Western University of Arad ( email )

94 Revolutiei Blvd.
Arad, Arad 310025
Romania

Register to save articles to
your library

Register

Paper statistics

Downloads
20
Abstract Views
439
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information