Open Economies Review

, Volume 23, Issue 4, pp 741–745 | Cite as

Intra-Industry Trade Revisited: A Note



This short note revisits the relative importance of intra- and inter-industry trade by using the Grubel-Lloyd formula as a measure of intra-industry trade to the country’s manufacturing trade (sections 5–8 of the SITC) where each industry is the four digit classification. Measures for a country’s total trade, as well as its bilateral trade with specific countries are utilized. The results demonstrate that intra-industry trade dominates trade among the OECD countries, while inter-industry trade dominates North-South and South-South trade.


Grubel-Lloyd Intra-industry Inter-industry Trade OECD BRIC 

JEL classification




The authors are grateful to Nakarin Amarase for research assistance.


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  2. Lloyd PJ (2004) Measures of similarity and matching in international trade. In: Plummer M (ed) Empirical methods in international trade. Edward Elgar Publisher, UK, pp 21–34Google Scholar
  3. United Nations Commodity Trade Statistics Database. (

Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Department of Finance, MSC 3FIN, College of BusinessNew Mexico State UniversityLas CrucesUSA
  2. 2.Department of Economics, 110 Marshall-Adams HallMichigan State UniversityEast LansingUSA

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