INTRA-INDUSTRY TRADE AND ECONOMIC DEVELOPMENT: THE CASE OF AFRICAN DEVELOPING COUNTRIES

Mykhaylo Kunychka ()
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Mykhaylo Kunychka: Fakulta medzinárodných vzťahov, Ekonomická univerzita v Bratislave

Almanach (Actual Issues in World Economics and Politics), 2021, vol. 16, issue 2, 5-15

Abstract: The purpose of the paper is to examine the relationship between economic development and intra-industry trade on the example of developing countries in Africa. According to theoretical considerations in the field of international trade, economies of scale arising from intra-industry trade will lead to a faster increase in productivity, and thus to rapid economic growth. We expect that the intra-industry trade to total trade ratio will have a positive direct impact on the level of economic development. GNI per capita, human development index, Grubel-Lloyd index of intra-industry trade and other explanatory variables are used to reach the purpose of the research. The results suggest that the share of intra-industry trade has a statistically significant impact on economic development in African countries. This conclusion also confirms the validity of a product-oriented policy to diversify African countries' export and import flows in order to increase level of income and human development.

Keywords: economic development; intra-industry trade; trade structure; Africa (search for similar items in EconPapers)
JEL-codes: F12 F63 (search for similar items in EconPapers)
Date: 2021
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