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The index of intra-industry trade is calculated as

The index of intra-industry trade is calculated as

The GL index in equation (1) can be modified to obtain the average level of intra- industry trade for a country j. Grubel-Lloyd proposed calculating a weighted  We calculated the ratio of FDI inflows (or stocks) to GDP for each country and then took the average of the ratios for the two trading countries. Although we  the EU-15 countries amounted to: 5.7% and 8.8% (own calculations). GLi – intra-industry trade index for commodity class i (here: goods at 5-digit SITC level); . The Grubel-Lloyd Index is used to calculate the intensity of IIT and thus to determine its relative importance compared to inter-industry trade. IIT values estimated 

The Grubel–Lloyd index measures intra-industry trade of a particular product. It was introduced by Herb Grubel and Peter Lloyd in 1971.

The trade intensity index (T) is used to determine whether the value of trade between two countries is greater or smaller than would be expected on the basis of their importance in world trade. It is defined as the share of one country’s exports going to a partner divided by the share of world exports going to the partner. Differences between inter-industry and intra-industry trade. Heckscher-Ohlin Model and Intra-Industry Trade . The trade within EU from dispatches was calculated to be EUR 2 194 341 million in 2009 (Eurostat, 2011). This amount is more than double the amount of trade engaged in with non-EU countries. A measure of the intra-industry trade that takes place between countries is the Grubel-Lloyd (GL) index. E.g. If a country only exports or imports good X (e.g. sugar) then the GL index for that sector is equal to 0. Although it is not perfect, GL Index is a frequently cited indicator to measure intra-industry trade in the world. The application of GL index in intra-industry trade can be improved through the study of mechanical and electrical products intra-industry trade between China and Korea.

The GL-index is calculated based on bilateral trade flows. When calculating an index, for a group, based on more disaggregated indexes, from subgroups, the 

between developed and developing countries (vertical intra-industry trade) separately, because 4.3 Empirical Results of Unit Value Calculations . . . . . . . 45. 4.4 Empirical Results of Decomposition of the IIT Index as HIIT and. VIIT Index . The whole trade conducted by Indonesia which is 5-8 SITC in the category of manufacturing industry Rev. 3, by two digits, is calculated using Grubel-Lloyd index  Fulltext - The Effects of Free Trade Agreement on Intra-Industry Trade (A Case IIT levels are calculated by using the Unadjusted Grubel and Lloyd (1975) Index  

26 Sep 2018 To include intra-industry trade as a control variable, we use the same operationalization as , who calculate the Grubel Lloyd Index (Grubel and 

By the end of this section, you will be able to: Identify at least two advantages of intra-industry trading; Explain the relationship between economies of scale and  23 Apr 2015 The aim of research is to calculate and evaluate Iran's comparative advantages and intra-industry trade in pharmaceuticals. Finally, some  The GL index in equation (1) can be modified to obtain the average level of intra- industry trade for a country j. Grubel-Lloyd proposed calculating a weighted  We calculated the ratio of FDI inflows (or stocks) to GDP for each country and then took the average of the ratios for the two trading countries. Although we  the EU-15 countries amounted to: 5.7% and 8.8% (own calculations). GLi – intra-industry trade index for commodity class i (here: goods at 5-digit SITC level); . The Grubel-Lloyd Index is used to calculate the intensity of IIT and thus to determine its relative importance compared to inter-industry trade. IIT values estimated  7 Oct 2019 Thereafter, a dynamic index of intra-industry trade was constructed trade (MIIT) index is used for measurement, and its equation is as follows:.

Some authors have calculated the ratio of production by foreign affiliates to Grubel-Lloyd index for extended intra-industry trade as described in equation (7).

between developed and developing countries (vertical intra-industry trade) separately, because 4.3 Empirical Results of Unit Value Calculations . . . . . . . 45. 4.4 Empirical Results of Decomposition of the IIT Index as HIIT and. VIIT Index . The whole trade conducted by Indonesia which is 5-8 SITC in the category of manufacturing industry Rev. 3, by two digits, is calculated using Grubel-Lloyd index  Fulltext - The Effects of Free Trade Agreement on Intra-Industry Trade (A Case IIT levels are calculated by using the Unadjusted Grubel and Lloyd (1975) Index   to the Czech Republic which then exports assembled cars to Germany, a GL index calculated at an aggregate level will report lots of intra-industry trade in the   The index of intra-industry trade is calculated as: a.the minimum of imports and exports divided by the average of imports and exports. b.the maximum of imports and exports divided by the sum of imports and exports. c.imports divided by exports. d.imports plus exports divided by the average of imports and exports. The index of intraindustry trade is calculated as: the minimum of imports and exports divided by the average of imports and exports. Suppose that industry X and industry Y have intraindustry trade indexes equal to 0.80 and 0.20, respectively. The index of intra-industry trade is calculated as: the minimum of imports and exports divided by the average of imports and exports. If the index of intra-industry trade for an industry is zero, then. there are either no exports or no imports in that industry.

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