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Growth and Pattern of Intra-Industry Trade in Manufactures in Inida's Overall Trade:A Quantitative Analysis

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  • Das, Gouranga G.

Abstract

This paper analyses empirical evidences of growing volume of Intra-industry trade in India during 1975-1992. Quantitative evidences show that trade in manufactured products has increased with rapid industrialisation leading to genesis of intra-industry trade. Measures of Grubel-Lloyd Intra-industry trade indexes for India’s trade with the world, the Asian economies and the developed countries are calculated. It shows that India’s intra-industry trade is more with the developed countries than with the developing countries. Also, we observe that burgeoning volume of intra-industry trade is positively associated with (i) per capita GNP; (ii) trade openness; (iii) share of manufacturing exports in total exports.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37919.

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Date of creation: 2003
Date of revision: 2005
Publication status: Published in Indian Journal of Economics and Business 1.4(2005): pp. 161-184
Handle: RePEc:pra:mprapa:37919

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Related research

Keywords: Intra-industry trade; India's trade pattern; Manufactures trade; trade openness; development; Grubel-Lloyd index;

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References

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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, Springer, vol. 126(1), pages 25-49, March.
  2. Havrylyshyn, Oli & Civan, Engin, 1985. "Intra-industry trade among developing countries," Journal of Development Economics, Elsevier, Elsevier, vol. 18(2-3), pages 253-271, August.
  3. Ethier, Wilfred, 1979. "Internationally decreasing costs and world trade," Journal of International Economics, Elsevier, Elsevier, vol. 9(1), pages 1-24, February.
  4. Balassa, Bela, 1986. "Intra-Industry specialization : A cross-country analysis," European Economic Review, Elsevier, Elsevier, vol. 30(1), pages 27-42, February.
  5. Pomfret, Richard, 1985. "Categorical Aggregation and International Trade: A Comment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 95(378), pages 483-85, June.
  6. Lancaster, Kelvin, 1991. "The 'product variety' case for protection," Journal of International Economics, Elsevier, Elsevier, vol. 31(1-2), pages 1-26, August.
  7. Lundberg, Lars, 1988. "The role of comparative costs for determining inter- and intra-industry trade with developing countries," European Economic Review, Elsevier, Elsevier, vol. 32(9), pages 1699-1710, November.
  8. Havrylyshyn, Oli, 1985. "The direction of developing country trade : Empirical evidence of differences between South-South and South-North trade," Journal of Development Economics, Elsevier, Elsevier, vol. 19(3), pages 255-281, December.
  9. Greenaway, David & Milner, Chris R, 1983. "On the Measurement of Intra-Industry Trade," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 93(372), pages 900-908, December.
  10. Ocampo, JoseAntonio, 1986. "New developments in trade theory and LDCs," Journal of Development Economics, Elsevier, Elsevier, vol. 22(1), pages 129-170, June.
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Cited by:
  1. Sawyer, William C. & Sprinkle, Richard L. & Tochkov, Kiril, 2010. "Patterns and determinants of intra-industry trade in Asia," Journal of Asian Economics, Elsevier, Elsevier, vol. 21(5), pages 485-493, October.

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