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Intra-Industry Trade And Economic Development: The Case Of African Developing Countries

Author

Listed:
  • Mykhaylo Kunychka

    (Fakulta medzinárodných vzťahov, Ekonomická univerzita v Bratislave)

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.

Suggested Citation

  • Mykhaylo Kunychka, 2021. "Intra-Industry Trade And Economic Development: The Case Of African Developing Countries," Almanach (Actual Issues in World Economics and Politics), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 16(2), pages 5-15.
    • Handle: RePEc:brv:almnch:v:10:y:2021:i:2:p:5-15
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    More about this item

    Keywords

    economic development; intra-industry trade; trade structure; Africa;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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