Intra-Industry Trade and Labour Market Adjustment in the Automobile Industry
نویسنده
چکیده
This paper examines the effects of increased intra-industry trade on the labour market adjustment costs in Portugal’s automobile industry. Using a static and dynamic panel data approach, the results show a negative correlation between changes of employment and marginal intra-industry trade. These results confirm the smooth adjustment hypothesis, as well as suggesting that the multinational companies (MNC) engaged in the automobile sector have low adjustment costs if they increase the intra-firm trade, that is, the trade in automobile components between different units of MNCs.
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