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Open Economies Review

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

Intra-Industry Trade Revisited: A Note

  • Maria E. de Boyrie
  • Mordechai Kreinin
COMMENT

Abstract

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.

Keywords

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

JEL classification

F14 

Notes

Acknowledgement

The authors are grateful to Nakarin Amarase for research assistance.

References

  1. Grubel HG, Lloyd PJ (1971) The Empirical Measurement of Intra-Industry. Econ Record 47:494–517CrossRefGoogle Scholar
  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. (http://comtrade.un.org/db/default.aspx).

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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