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Economic Development and Intra-Industry Trade in Less Developed Countries


  • Ranajoy Bhattacharyya

    (Department of Business Management, Calcutta University, Kolkata, India)


This paper provides a comprehensive analysis of intra-industry trade (IIT) and its relationship to economic development in eighteen Asian and Latin American less developed countries. The general conclusion of the paper is that IIT in less developed countries is significant and stable but smaller in magnitude to developed countries. The relationship between the extent of economic development and IIT however is masked by the presence of outliers. Appropriate methods are adopted first to identify and remove these outliers. The final conclusion that emerges is that the relationship between economic development and IIT is a strong one.

Suggested Citation

  • Ranajoy Bhattacharyya, 2007. "Economic Development and Intra-Industry Trade in Less Developed Countries," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 42(1), pages 57-75, July.
  • Handle: RePEc:dse:indecr:v:42:y:2007:i:1:p:57-75

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    More about this item


    Intra-Industry Trade; Economic Development; Transitiar Probability Matrix; Outliers;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation


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