Marginal intra-industry trade and adjustment costs: The Australian experience
The objective of this research is to investigate labour market adjustment associated with changes in Australia's trade pattern over the period 1992-2000. Specifically the focus is on the so-called smooth adjustment hypothesis (SAH) which posits that, compared with inter-industry trade, intra-in...
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| Format: | Working Paper |
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Centre for Research in Applied Economics
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/13609 |
| _version_ | 1848748391068073984 |
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| author | Thorpe, Michael Leitao, N. |
| author_facet | Thorpe, Michael Leitao, N. |
| author_sort | Thorpe, Michael |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | The objective of this research is to investigate labour market adjustment associated with changes in Australia's trade pattern over the period 1992-2000. Specifically the focus is on the so-called smooth adjustment hypothesis (SAH) which posits that, compared with inter-industry trade, intra-industry trade (IIT) expansion is associated with relatively lower factor adjustment costs. A dynamic panel data approach (GMM-System) is employed. We find that there is a negative correlation between changes in employment and increased IIT. This result provides support for the SAH. Given the rise in IIT as a proportion of Australia's overall trade during the period under review, the adjustment in labour markets stemming from trade liberalisation at that time is likely to have been less than otherwise expected. |
| first_indexed | 2025-11-14T07:04:18Z |
| format | Working Paper |
| id | curtin-20.500.11937-13609 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:04:18Z |
| publishDate | 2011 |
| publisher | Centre for Research in Applied Economics |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-136092017-01-30T11:38:11Z Marginal intra-industry trade and adjustment costs: The Australian experience Thorpe, Michael Leitao, N. Marginal intra-industry trade dynamic panel data labour market adjustment The objective of this research is to investigate labour market adjustment associated with changes in Australia's trade pattern over the period 1992-2000. Specifically the focus is on the so-called smooth adjustment hypothesis (SAH) which posits that, compared with inter-industry trade, intra-industry trade (IIT) expansion is associated with relatively lower factor adjustment costs. A dynamic panel data approach (GMM-System) is employed. We find that there is a negative correlation between changes in employment and increased IIT. This result provides support for the SAH. Given the rise in IIT as a proportion of Australia's overall trade during the period under review, the adjustment in labour markets stemming from trade liberalisation at that time is likely to have been less than otherwise expected. 2011 Working Paper http://hdl.handle.net/20.500.11937/13609 Centre for Research in Applied Economics fulltext |
| spellingShingle | Marginal intra-industry trade dynamic panel data labour market adjustment Thorpe, Michael Leitao, N. Marginal intra-industry trade and adjustment costs: The Australian experience |
| title | Marginal intra-industry trade and adjustment costs: The Australian experience |
| title_full | Marginal intra-industry trade and adjustment costs: The Australian experience |
| title_fullStr | Marginal intra-industry trade and adjustment costs: The Australian experience |
| title_full_unstemmed | Marginal intra-industry trade and adjustment costs: The Australian experience |
| title_short | Marginal intra-industry trade and adjustment costs: The Australian experience |
| title_sort | marginal intra-industry trade and adjustment costs: the australian experience |
| topic | Marginal intra-industry trade dynamic panel data labour market adjustment |
| url | http://hdl.handle.net/20.500.11937/13609 |