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Original Articles

Intra-industry trade and adjustment in Malaysia: puzzling evidence

Pages 729-733 | Published online: 06 Oct 2010
 

Abstract

The structure of Malysia's trade expansion over the high-growth period 1970–1994 and its implications for labour-market adjustment is examined. An econometric analysis of trade and employment data suggests that intra-industry trade is related with relatively large inter-industry payroll changes. Results therefore cast doubt over the widely held smooth-adjustment hypothesis of intra-industry trade.

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