Authors
1 Assistant Professor, Isfahan University, Isfahan, Iran
2 M.S. in Economics
Abstract
The importance of intra-industry trade (IIT) is in the conjunction with its role in exploring trade potentials in all countries, and interpreting the trade relations among themselves. This paper strikes to calculate the extent of Iran’s IIT using Gruble and Lloyd index (G-L) during 1998-2002, while a relevant test indicates that there is no significant difference between G-L method and other IIT measurements for the results obtained.
This study has focused on analyzing two different commodity groups. First, IIT index has been measured at the 5-digit level of the ISIC, so that the computed IIT on average for 1998 and 2002 are 17.14 and 27.82 percent, respectively. Second, the IIT at the 6- digit level of the HS[1] for these years are calculated as about 9.28 and 14.2 percent, respectively. The latter is much different from the former calculation in which its ratio is higher than that of the later classification even though both results have a similar direction in changes.
Additionally, the paper has calculated the regional IIT index to evaluate the position of Iran’s trade partners in the selected trading blocks. The results reveal that Iran’s IIT has the most similarity and convergence with the OIC[2] implying the realization of the Islamic Common Market (ICM).
1. Harmonized Commodity Description and Coding System (HS)
2. Organization of Islamic Conference (OIC)
Keywords
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