An Impact of Intra-Industry Trade on Employment: A Case Study for Iran
Unemployment is one of the main problems of developing countries. On the other hand, as trade increases it is expected that some workers lose their jobs which is called adjustment cost In the framework of new trade theories, intra industry trade has low adjustment cost. Thus, it seems that this type of trade can decrease unemployment via lower adjustment costs. The purpose of present research is to test the hypothesis that intra industry trade has a positive effect on employment. In so doing, at first we have put intra industry trade into two categories namely vertical and horizontal intra industry trade. Next, by using pooled data of Iranian manufacturing industries at the 4-digit aggregation level of ISIC classification during 2002-2006, we have estimated the employment panel equations. Furthermore, this paper has used other variables affecting employment such as productivity, capital, value added and real wage. Based on the results obtained from the panel models, total intra industry trade has a negative impact on employment while horizontal intra industry trade represents a positive effect on it. So, the hypothesis is verified for HIIT.
horizontal intra industry trade vertical intra industry trade employment adjustment cost manufacturing industries panel data
Saeed Rasekhi Saman Ghaderi
Faculty of Economics and Administrative Science The University of Mazandaran Babolsar, Iran
国际会议
上海
英文
61-64
2011-03-11（万方平台首次上网日期，不代表论文的发表时间）