effect of marginal intra-industry trade on excess job reallocation in iran's manufacturing industries

according to the recent literature, the expansion of intra-industry trade increases the intra-industrial excess job reallocation. based on lovely and nelson (2002), this study examined the hypothesis that marginal intra-industry trade has a positive effect on the excess job reallocation in iranian industries. therefore, we have employed a panel technique for iranian manufacturing industries at the 3-digit isic classification over the period 2002-2006. the results show that the expansion of marginal intra-industry trade increases the excess job reallocation that probably decreases the adjustment costs in industrial labour market. therefore, we suggest that the government should pay more attention to intra-industry trade in order to control and reduce the adjustment costs of trade expansion and liberalization. jel classification: f12، f14، f16، j62