INTRA INDUSTRY TRADE BETWEEN IRAN & CHINA: A NEW PERSPECTIVE

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IZAD G.A

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Journal: Iranian Journal of Economic Research Year:2006 | Volume:8 | Issue:26 Page(s): 81-99

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Title

INTRA INDUSTRY TRADE BETWEEN IRAN & CHINA: A NEW PERSPECTIVE

Author(s)

IZAD G.A | Issue Writer Certificate

Keywords

INTRA INDUSTRY TRADE (IIT)Q2

TRADE TYPE METHODQ3

VERTICAL INTRA INDUSTRY TRADE (VIIT)Q3

HORIZONTAL INTRA INDUSTRY TRADE (HIIT)Q3

TWO WAY TRADE (TWT)Q3

Abstract

The Purpose of this study is to analyse the Intra Industry Trade (IIT) between Iran and China using Trade Type Approach. To avoid the geographic and sectoral bias, we consider the bilateral trade and concentrate on quality and commodity differentiation.Our findings show that the share of Intra Industry Trade between Iran and China is very low. In fact, a large part of our trade belongs to vertical (and horizontal) Intra Industry Trade. This means that we have a low competitive power in final products, whereas we have a high competitive power in raw materials, and low quality products. Our investigation suggests that Iran’s situation can be improved by the quality of exported products. Our study also shows that high unemployment rates are in sectors in which the Intra Industry Trade is weak. Our finding implies a necessity for change in free trade strategy, so that by increasing the quality of products, Iran may increase its share in Intra Industry Trade with China and enjoy a higher industrial employment.

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APA: Copy

IZAD, G.A. (2006). INTRA INDUSTRY TRADE BETWEEN IRAN & CHINA: A NEW PERSPECTIVE. IRANIAN ECONOMIC RESEARCH, 8(26), 81-99. SID. https://sid.ir/paper/2665/en

Vancouver: Copy

IZAD G.A. INTRA INDUSTRY TRADE BETWEEN IRAN & CHINA: A NEW PERSPECTIVE. IRANIAN ECONOMIC RESEARCH[Internet]. 2006;8(26):81-99. Available from: https://sid.ir/paper/2665/en

IEEE: Copy

G.A IZAD, “INTRA INDUSTRY TRADE BETWEEN IRAN & CHINA: A NEW PERSPECTIVE,” IRANIAN ECONOMIC RESEARCH, vol. 8, no. 26, pp. 81–99, 2006, [Online]. Available: https://sid.ir/paper/2665/en

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