Faustino, Horácio C.; Leitão, Nuno Carlos - ISEG - School of Economics and Management, Department … - 2010
This paper provides an empirical test of the SAH (Smooth Adjustment Hypothesis) using data from Portugal. According to SAH, intra-industry trade leads to relatively lower adjustment costs in comparison to inter-industry trade. The paper tests the SAH by using a dynamic panel data analysis that...