CHANGES OF LITHUANIAN INTRA-INDUSTRY TRADE IN LIGHT OF THE ECONOMIC CRISIS

Abstract

This paper investigates the changes of Lithuanian intra-industry trade in light of the economic crisis. The paper analyses the basic theories and methods of intra-industry trade measurement; the influence of this form of trade on the changes of international trade structure. For measurement the changes of intra-industry trade in light of the economic crisis in the paper two approaches are adopted. The Grubel-Lloyd index is used to calculate the intensity of intra-industry trade and thus to determine its relative importance compared to inter-industry trade. Secondly, the index of intra-industry trade is used to calculate proportion of trade in each product involves both imports and exports. Using these methods of measurement and standard international trade classification (SITC) was established the importance of intra-industry trade on the changes of international trade structure in light of economic crisis. It was found that the biggest flows from Lithuania to the EU are in such groups: food, drink and tobacco; other manufactured goods. It was determined that Lithuanian intra-industry trade decreased in 2009. The researches show that the EU has advantages in trade with goods induced in group’s mineral fuels, lubricants and related materials, machinery and transport equipment.

DOI: http://dx.doi.org/10.5755/j01.em.17.1.2258