Answer to Question #206679 in Economics for Bisma

Question

How can intra industry trade be measured

Answer 1

The size of intra-industry trade is measured by using Grubel and Lloyd's index, i.e., the share of intra-industry trade in total trade (IIT). The more extreme an industry is with regard to factor intensity, i.e., if an industry is very capital or very labor intensive, the smaller IIT is in that industry.