An Empirical Assessment of the Impact of Intra-Industry Trade on Employment: Australia 1989/90-2000/01

This paper investigates dynamic aspects of labour market adjustment in Australia during 1989/90 and 2000/01 due to extensive trade reforms and associated developments in intra-industry trade. In view of the foregoing, it was hypothesised that trade reforms have had a positive impact on employment to the extent that trade flows are intra-industry. We do find that declining protection over this period is associated with increased employment to the extent that trade flows are intra-industry.