Growth and Pattern of Intra-Industry Trade between India and Bangladesh: 1975-2010

The Journal of International Economic Policy, 2014, No. 2 (21), pp. 5-28

24 Pages Posted: 3 Jan 2015

See all articles by Sushil Kumar

Sushil Kumar

Jamia Millia Islamia (A Central University)

Shahid Ahmed

Jamia Millia Islamia (A Central University) - Economics

Date Written: December 29, 2014

Abstract

The present study investigates the intra-industry trade between India and Bangladesh over the period of 1975 to 2010. GL index is used to calculate intra-industry trade at the three-digit level of SITC. The study also calculated the trade complementarity index, and revealed comparative index. The extent of intra-industry trade is high in sectors like crude materials, inedible, except fuels, food and live animals. The study also reveals mismatch between Indian imports and Bangladesh exports. The present study indicates positive effect on consumer surplus and trade using SMART model. Finally, the paper suggests that Bangladesh should diversify his export structure to reduce the bilateral trade deficit on the basis of comparative advantage.

Keywords: Grubel Lloyd index, trade complementarity index, SMART model, economic regionalism

Suggested Citation

Kumar, Sushil and Ahmed, Shahid, Growth and Pattern of Intra-Industry Trade between India and Bangladesh: 1975-2010 (December 29, 2014). The Journal of International Economic Policy, 2014, No. 2 (21), pp. 5-28. Available at SSRN: https://ssrn.com/abstract=2544407

Sushil Kumar (Contact Author)

Jamia Millia Islamia (A Central University) ( email )

Jamia Nagar
New Delhi, Haryana 122002
India

Shahid Ahmed

Jamia Millia Islamia (A Central University) - Economics ( email )

Jamia Nagar
New Delhi, 110025
India

HOME PAGE: http://jmi.ac.in/economics/faculty-members/Prof_Shahid_Ahmed-1783

Register to save articles to
your library

Register

Paper statistics

Downloads
66
Abstract Views
372
rank
337,754
PlumX Metrics