Vertical and Horizontal Intra-Industry Trade of Serbia and Slovenia
DOI:
https://doi.org/10.55707/eb.v8i1.6Keywords:
intra-industry trade, product differentiation, Serbia, SloveniaAbstract
Intra-industry trade (IIT) is the simultaneous export and import of similar products by the same country. However, the quality of the products being exchanged can vary significantly. Therefore, it is important to consider the share of vertical and horizontal intra-industry trade in the total intra-industry trade. Horizontal IIT (HIIT) represents the exchange of similar products of similar quality, while vertical IIT (VIIT) represents the exchange of similar products of different quality. The paper analyzes the horizontal and vertical IIT between Serbia and Slovenia in the period between 2004 and 2019. During the observed period, the Grubel-Lloyd index of intra-industry trade ranged from 0.22 to 0.48. Moreover, a higher share of vertical IIT was noted, indicating that the exchange of products of different quality was better represented in the structure of the total IIT
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