This paper investigates the determinants of intraindustry trade IIT , horizontal IIT HIIT , and Vertical IIT VIIT in the automobile industry in Portugal. The trade in this sector between Portugal and the European Union EU-27 was examined, between 1995 and 2008, using a dynamic panel data. We apply the GMM system to solve the problems of serial correlation and the endogeneity of some explanatory...

INTRA-INDUSTRY TRADE AS AN INDICATOR OF LABOR MARKET ADJUSTMENT A growing body of recent empirical research uses measures of change in intra-industry trade as indicators of labor market adjustment. In this paper, we argue that the theoretical foundations for this work are problematic. To make this argument we develop a simple model with both interand intra-industry trade and adjustment. We defi...

This paper investigates some dynamic aspects of the “smooth adjustment hypothesis” that is commonly associated with intraindustry trade (IIT). The analysis is conducted on a panel of plant-level employment data and industry-level production and trade data for Ireland. Rates of intraindustry job turnover are used as a proxy for labor-market adjustment. Three findings stand out. First, a measure ...

1. Introduction During the negotiation and implementation stages of the " 1992 " single market programme, prominent economists anticipated that the pressures for industrial restructuring among EU[1] countries would be considerably stronger than during previous episodes of European integration. Krugman (1987, p. 364) put it as follows: " The question now is whether the further expansion of trade...

This paper analyzes the theoretical and empirical relationship between intraindustry trade flows (IIT) in manufactures and technical change for the Colombian manufacturing industry during 1970-1995 period. A general estimating equation for sources of change of the equilibrium number of varieties, in which TFP growth is one of its components, is derived from the basic model of trade in different...

The evidence of intra-industry trade (IIT) is one of the most important empirical findings in international trade literature, though its empirical background is poorly developed. The article contributes to the empirical literature by analysing the effects of EU accession on intra-industry trade by using the Grubel-Lloyd index. Results show that agricultural trade between Hungary and EU15 in 200...

This study examines the features and determinants of Portuguese intra-industry trade (IIT) during the period 1995-2003. We separate horizontal IIT from vertical III using data at the five-digit level. Based on Falvey and Kierzkowski (1987) and Flam and Helpman (1987) theoretical models and on Greenaway, Hine and Milner(1994), Hummels and Levinshon (1995) empirical studies, we use a static and d...