Abstract
Globalisation and closer regional integration have led to significant increases in trade between nations that in turn impacts on existing long-standing trade partnerships. A consequence of changing trade patterns is an increase in the pressure for resources to reallocate between industries and sectors. This paper provides an integrated approach to the analysis of trade-induced adjustment that complements the existing literature. Adjustment pressures are documented in accordance with the theoretical underpinnings of the smooth adjustment hypothesis and satisfy a number of desirable criteria, monotonicity, consistency and country specificity. The applicability of the authors' approach is examined using UK manufacturing data.
Original language | English |
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Pages (from-to) | 419-439 |
Number of pages | 21 |
Journal | Review of World Economics |
Volume | 139 |
Issue number | 3 |
Publication status | Published - 1 Dec 2003 |
Keywords
- Adjustment costs
- Intra-industry trade
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)