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Intra-industry trade in textile industry: the case of India

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  • Priyanka Singh Bhadouria
  • N.M.P. Verma
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    Abstract

    Intra-industry trade (IIT) plays a pivotal role in Indian textile industry. It is a new phenomenon. Since 1960, this concept has been used by Pieter Verdoorn and Bela Balassa. The aim of this paper is to measure the level of IIT in Indian textile industry. For this purpose, the Grubel–Lloyd index has been calculated. The analysis is based on annual time series data of export and import. The results reveal that during 1990s, the level of IIT in Indian textile industry was higher, whereas since inception of 21st century it went down. It is due to rise in net export.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Economics and Business Research.

    Volume (Year): 4 (2012)
    Issue (Month): 1/2 ()
    Pages: 199-212

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    Handle: RePEc:ids:ijecbr:v:4:y:2012:i:1/2:p:199-212

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    Web page: http://www.inderscience.com/browse/index.php?journalID==310

    Related research

    Keywords: GL index; Herb Grubel; Peter Lloyd; textile industry; India; net exports; textiles; Pieter Verdoorn; Bela Balassa; annual time series; imports; economics; business research; intra-industry trade.;

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    1. Raff, Horst & Wagner, Joachim, 2009. "Intra-Industry Adjustment to Import Competition: Theory and Application to the German Clothing Industry," IZA Discussion Papers 4434, Institute for the Study of Labor (IZA).
    2. Marius Brulhart & Michael Thorpe, 2000. "Intra-industry trade and adjustment in Malaysia: puzzling evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 7(11), pages 729-733.
    3. Veeramani C, 2010. "India's Intra- Industry Trade Under Economic Liberalization: Trends and Country Specific Factors," Working Papers id:2967, eSocialSciences.
    4. C. Veeramani, 2007. "Industry-Specific Determinants of Intra-Industry Trade in India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 42(2), pages 211-229, December.
    5. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    6. Donghui Li & Fariborz Moshirian & Ah-Boon Sim, 2003. "The Determinants of Intra-Industry Trade in Insurance Services," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 70(2), pages 269-287.
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