Economic Development and Intra-Industry Trade in Less Developed Countries

Ranajoy Bhattacharyya

Indian Economic Review, 2007, vol. 42, issue 1, 57-75

Abstract: 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.

Keywords: Intra-Industry Trade; Economic Development; Transitiar Probability Matrix; Outliers (search for similar items in EconPapers)
JEL-codes: F12 (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:v:42:y:2007:i:1:p:57-75

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