Labor Costs and Marginal Intra-Industry Trade: The Thailand Experience

Chemsripong, Sujinda
February 2014
World Journal of Neuroscience;Feb2014, Vol. 4 Issue 1, p125
Academic Journal
Thailand's international trade, exports in particular, expanded considerably after the major policy changes in 1990. According to this expansion, there was also a significant increase in intra-industry trade even though the major characteristic of Thailand trade is still inter-industry. However, intra-industry trade is hypothesized to reduce adjustment costs due to trade expansion and changes in trade compared to inter-industry trade. The main purpose of this paper is to examine the effects of increased Intra-Industry Trade (IIT) on the labor market adjustment cost, in view of the changes in Thailand's pattern of trade over the post-1990 period. The study is focused on the hypothesis that Intra-Industry Trade (IIT) expansion entails lower factor adjustment costs (Smooth Adjustment Hypothesis-SAH). A dynamic panel data approach is employed. The results suggest a negative correlation between changes in employment and Marginal Intra-Industry Trade (MIIT) and confirmation of the SAH. Given the increase in IIT as a proportion of Thailand's overall trade during the period under review, the adjustment in labor markets in the form of reduced employment from trade liberalization at that time is likely to have been less than that would have otherwise been expected.


Related Articles

  • On the Measurement of Changes in Product Quality in Marginal Intra-Industry Trade. Azhar, Abdul K. M.; Elliott, Robert J. R. // Review of World Economics;2008, Vol. 144 Issue 2, p225 

    There is a long established thread of the international trade literature concerned with the measurement of intra-industry trade (IIT). Two distinct strands of the literature have developed: First, measures of marginal IIT that are concerned with the adjustment implications of volume-based...

  • How Important is Intra-Industry Trade Between Turkey and Its Trading Partners? Gonel, Feride Doganer // Russian & East European Finance & Trade;Jul/Aug2001, Vol. 37 Issue 4, p61 

    Compares Turkey's share of intra-industry trade (IIT) with the European Union countries and Central Asian Turkic Republics. Indexes used for measuring IIT and the difference among them; Application of the Grubel-Lloyd index (GL) of the whole 96 two-digit Turkish Chapter Code List industries;...

  • Trade in Manufactures between Asian Pacific Rim Countries. Langhammer, Rolf J. // ASEAN Economic Bulletin;Jul89, Vol. 6 Issue 1, p94 

    The paper analyses changes in the regional composition of trade in manufactures between the Asian countries of the Pacific Rim (PACRIM) in the 1965-85 period and applies a gravity model approach in order to sift out determinants of bilateral trade in the Asian Pacific Rim area. Finally, changing...

  • Chinese Bilateral Intra-Industry Trade: A Panel Data Study for 50 Countries in the 1992—2001 Period. Jianhong Zhang; van Witteloostuijn, Arjen; Chaohong Zhou // Review of World Economics;Oct2005, Vol. 141 Issue 3, p510 

    This study examines the features and determinants of Chinese intra-industry trade during the 1992–2001 transition period for 50 of China’s trade partners. We disentangle total intra-industry trade (TIIT) into vertical intra-industry trade (VIIT) vis-à-vis horizontal...

  • East-Asia-Intel.com: N. Korea enjoyed expanded trade with S. Korea, China and U.S. despite tension, tough sanctions - March 6, 2013.  // East-Asia-Intel Reports;3/ 6/2013, p6 

    The article reports on an increase in two-way trade between South Korea and North Korea. According to the Korea Customs Service, the volume of trade between the two nations reached 1.97 billion dollars in 2012, which is up from 1.91 billion dollars in 2010. Also, North Korea's two-way trade with...

  • Imperfect competition and international trade (Book Review). Meyer, F.V. // International Affairs;Winter86/87, Vol. 63 Issue 1, p118 

    Reviews the book 'Imperfect Competition and International Trade: The Policy Aspects of Intra-Industry Trade,' edited by David Greenaway and P.K.M. Tharakan.

  • Measuring Intra-Industry and Marginal Intra-Industry Trade. Erlat, Güzin; Erlat, Haluk // Emerging Markets Finance & Trade;Nov2003, Vol. 39 Issue 6, p5 

    Works on whether Turkey's trade structure is predominantly interindustry or intra- industry and whether there has been a shift toward intra-industry trade (IIT) after 1980 are of a limited number. The present study attempts to shed some light on these questions, stressing, in particular,...

  • MEASURING INTRA-INDUSTRY SPECIALIZATION IN FOREIGN TRADE AND PRODUCTION. Dyba, Karel // Soviet & Eastern European Foreign Trade;Winter75/76, Vol. 11 Issue 4, p57 

    Proposes a method for measuring the level of intra-industry specialization in foreign trade and production. Existence of intra-industry specialization in the manufacturing sectors; Methodological considerations in measuring the level of intra-industry specialization; Comparison of the...

  • On the measurement of product quality in intra-industry trade: An empirical test for China. AZHAR, Abdul K.M.; ELLIOTT, Robert J.R.; LIU, Junting // China Economic Review (1043951X);Jun2008, Vol. 19 Issue 2, p336 

    Abstract: A relatively recent development in the intra-industry trade (IIT) literature is the measurement of the simultaneous import and export of quality-differentiated products, commonly known as vertical and horizontal IIT. A recent paper from Azhar and Elliott [Azhar, A. K. M. & Elliott, R....


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics