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Intra-industry Trade, Knowledge and Adjustment Costs

Keywords: JEL classification C33 , portugal , Marginal intra-industry trade , labour market , innovation , F12 , panel data

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The international technology diffusions are associated with the changes in labour market. The empirical results show a negative correlation between the changes of employment and Marginal Intra-Industry Trade (MIIT). We also find a positive correlation between changes of employment and knowledge. The economic dimension and market structure are according to Smooth Adjustment Hypothesis (SAH).


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