Research
Intra-industry Trade and Labour Market Adjustment in France
According to the “smooth adjustment hypothesisâ€, the labor market adjustment costs entailed by trade liberalization are lower if trade expansion is intra industry rather inter industry in nature. In this paper, we study the link between trade and labor-market changes in France over the period 1986-2011. The empirical survey, uses a panel data models with fixed effects, it showes a negative correlation between changes of employment and marginal intra-industry trade. These results confirm the smooth adjustment hypothesis. The mesure of marginal IIT is then found to be more appropriate for the analysis of adjustment issues than the traditional static IIT index.
Islamic Finance: A Bulwark against Crisis?
The aim of this paper is to show that the Islamic finance is more stable than the conventional finance constituting, thus, a means to reduce the impact of financial crisis. Using a VAR model for the financial indexes of France (SBF250), United States (DOW JONES), United Kingdom (FTSE100), Indonesia (JAKISLM) and Saudi Arabia (TADAWUL) covering the period (26/02/2007- 12/20/2010), we show that the effect of a shock on the American market during the period of crisis is negatively transmitted on all other markets, but with a small extent on the market using the method of Islamic financing.
