Cattaneo, NicoletteFryer, David2007-11-132007-01-252007-11-132003http://hdl.handle.net/10625/26606This paper begins by surveying the long-run distributional consequences of trade from alternative theoretical perspectives. The focus of the paper is on the so-called “smooth adjustment hypothesis” that is, the idea that transitional adjustment is easier (or harder) to the extent that new trade is intra- (or inter-) industry in nature. Results confirm that a very small proportion of new trade between 1994 and 2000 within South African Development Community (SADC) was intra-industry, implying large dislocations. Regional integration could facilitate intra-industry trade expansion, particularly among developing countries, to ameliorate adverse poverty outcomes as a result of liberalisation.1 digital fileenLABOUR MARKETPOVERTYINDUSTRIAL RESEARCHINCOME DISTRIBUTIONTRADEREGIONAL INTEGRATIONSOUTH AFRICAPOLICY MAKINGINDUSTRIAL POLICYSOUTH OF SAHARAREGIONAL TRADE AGREEMENTSINTRAINDUSTRY TRADEINTRAREGIONAL TRADEWorking Paper