Marginal intra-industry trade and adjustment costs in the first phase of transition
Purpose - The aim of the paper is to investigate some dynamic aspects of the smooth adjustment hypothesis (SAH) associated with intra-industry trade (IIT). The structure of trade expansion in Hungary and Poland over the period 1990-1998 and its implications for labour market adjustment is examined. Design/methodology/approach - The paper applies an econometric approach and considers three-digit International Standard Industry Classification classified data. The paper uses a model developed by recent empirical literature, both in static and dynamic forms and tests whether the results are sensitive for the choice of length of period and marginal intra-industry indices. Findings - The econometric analysis suggests that changes in domestic consumption and productivity have significant influence on employment changes. Significant and negative relationships were found between trade openness and employment changes. The calculations provide some evidence to support SAH, especially for Poland. However, the effects of IIT on employment changes are small especially to additional hypotheses. The estimations show that partial trade liberalisation in Hungary and Poland has led to lower adjustment costs. Originality/value - The paper is one of the first to focus on labour market adjustment costs in transition countries. Its results also reveal that the estimations on the impacts of trade liberalisations should be interpreted only with care due to sensitivity on the length of time period and applied econometric techniques.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 37 (2010)
Issue (Month): 5 (November)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/jes.htm Email:
When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:37:y:2010:i:5:p:495-504. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.