Portuguese intra-industry trade and labor market adjustment costs:the sah again

Faustino, Horácio C.; Leitão, Nuno Carlos

http://hdl.handle.net/10400.15/646

Use this identifier to reference this record.

Name:	Description:	Size:	Format:
NunoLeitao_APE_2012.pdf		123.53 KB	Adobe PDF	Download

Send Feedback

Authors

Faustino, Horácio C.

Leitão, Nuno Carlos

Abstract(s)

This paper provides an empirical test of the SAH (smooth adjustment hypothesis) using the data on Portugal. According to the SAH, intra-industry trade leads to relatively lower adjustment costs in comparison to inter-industry trade. The paper tests the SAH by using a dynamic panel data analysis that takes into account lagged effects of changes in the MIIT (marginal intra-industry trade) index. The regressions use the absolute change in the total employment in a given industry as a proxy for trade adjustment costs. The main results imply that a higher MIIT leads to lower adjustment costs in the same year. More specifically, the coefficients of the MIIT index are negative and statistically significant in all the regressions. These results provide support for the SAH.

Keywords

Adjustment costs Dynamic panel data Labor market Marginal intra-industry trade Smooth adjustment hypothesis Portugal

URI

http://hdl.handle.net/10400.15/646

Citation

FAUSTINO, Horácio C. ; LEITÃO, Nuno Carlos - Portuguese intra-industry trade and labor market adjustment costs : the sah again. Actual problems of Economics. ISSN 1993-6788. 7 (2012) 494-503

Publisher

National Academy of Management Vul. Ukraine

Full item page