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

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  • 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.

Suggested Citation

  • Veeramani C, 2001. "India's intra-industry trade under economic liberalization: Trends and country specific factors," Centre for Development Studies, Trivendrum Working Papers 313, Centre for Development Studies, Trivendrum, India.
    • Handle: RePEc:ind:cdswpp:313
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    Cited by:

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    2. Barua, Alokesh & Chakraborty, Debashis & Hariprasad, C. G., 2010. "Entry, Competitiveness and Exports: Evidence from Firm Level Data of Indian Manufacturing," MPRA Paper 22738, University Library of Munich, Germany.
    3. Priyanka Singh Bhadouria & N.M.P. Verma, 2012. "Intra-industry trade in textile industry: the case of India," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 199-212.
    4. Sakshi Aggarwal & Debashis Chakraborty, 2022. "Which Factors Influence India’s Intra-Industry Trade? Empirical Findings for Select Sectors," Global Business Review, International Management Institute, vol. 23(3), pages 729-755, June.
    5. Sumanpreet Kaur, 2019. "Business Cycle Synchronization for India: An Appraisal via Trade Intensity," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 22(72), pages 78-101, June.
    6. Poornima Varma, 2012. "An analysis of India’s bilateral intra-industry trade in agricultural products," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 83-95.
    7. Nizar, Muhammad Afdi & Wibowo, Heru, 2007. "Analisis Pola Perdagangan Indonesia Dengan Beberapa Negara Asia : Pendekatan Intra-Industry Trade (Iit) [The Analysis Of Indonesia'S Trade Pattern With Some Asia Countries: Intra-Industry Trade (Ii," MPRA Paper 66323, University Library of Munich, Germany.
    8. Vudayagi Balasubramanyam & N Forsans, 2013. "Why do Indian firms go abroad?," Working Papers 33867210, Lancaster University Management School, Economics Department.
    9. Sakshi Aggarwal & Debashis Chakraborty, 2017. "Determinants of India’s Bilateral Intra-industry Trade over 2001–2015," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 18(2), pages 296-313, September.

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    Keywords

    India; Liberalisation; Intra-industry trade; Country specific factors;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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