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India's intra-industry trade under economic liberalization: Trends and country specific factors

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Author Info
Veeramani C (Centre for Development Studies)
Abstract

This paper focuses on two aspects of India's intra-industry trade (IIT)in manufactured commodities under economic liberalization. First, it examines the changes in the intensity of multilateral IIT as between 1987-88,1994-95 and 1998-99 to understand the impact of trade liberalisation on IIT. Second, within the theoretical framework of vertical IIT, it analyzes the influence of various country specific factors on the intensity and the probability of IIT in India 's bilateral trade with her major trading partners.The findings confirmed the hypothesis that trade liberalization biases trade expansion towards IIT.In most of the industries, the increased levels of IIT are export-led,that is,caused by a faster growth of exports than of imports. The econometric exercise showed that, certain country specific factors which are found to be crucial in theory, are pertinent in determining the country pattern of India 's IIT.

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Publisher Info
Paper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 313.

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Length: 38 pages
Date of creation: Mar 2001
Date of revision:
Handle: RePEc:ind:cdswpp:313

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Related research
Keywords: India; Liberalisation; Intra-industry trade; Country specific factors;

Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

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  1. Steven Globerman & James Dean, 1990. "Recent trends in intra-industry trade and their implications for future trade liberalization," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 126(1), pages 25-49, March. [Downloadable!] (restricted)
  2. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November. [Downloadable!] (restricted)
  3. Rudolf Loertscher & Frank Wolter, 1980. "Determinants of intra-industry trade: Among countries and across industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(2), pages 280-293, June. [Downloadable!] (restricted)
  4. P. Tharakan & Birgit Kerstens, 1995. "Does North-South horizontal intra-industry trade really exist? An analysis of the toy industry," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 131(1), pages 86-105, March. [Downloadable!] (restricted)
  5. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 565-91, September.
  6. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-22, December. [Downloadable!] (restricted)
  7. Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 62-81, March. [Downloadable!] (restricted)
  8. Lars Nilsson, 1999. "Two-way trade between unequal partners: The EU and the developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 102-127, March. [Downloadable!] (restricted)
  9. Balassa, Bela & Bauwens, Luc, 1987. "Intra-industry Specialisation in a Multi-country and Multi-industry Framework," Economic Journal, Royal Economic Society, vol. 97(388), pages 923-39, December. [Downloadable!] (restricted)
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