Intra-industry trade and adjustment in Malaysia : puzzling evidence

  title={Intra-industry trade and adjustment in Malaysia : puzzling evidence},
  author={MARIUS BRU{\`E} LHART and Michael Thorpe},
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.