Determinants of Intra-Industry Trade and Labour Market Adjustment

Book excerpt: Intra-industry trade (IIT) has emerged as a major area of research in the analysis of international and intra-regional specialization. This book highlights the changes which the Indian economy has witnessed in the past two decades following the economic liberalization of the 1990s. It has been revealed that there are comparatively few studies in the context of developing economies which focus on the country-industry-specific determinants of aggregate and sectoral IIT. The book incorporates several hypotheses to analyze demand-driven, supply-induced, industry-specific, and policy-oriented drivers influencing the level of bilateral aggregate and sectoral IIT in the Indian context. Moreover, several trade-related, labor specific and trade overlap induced factors dictate the growth trajectory and the employment level of an economy. Therefore, the current research conducts an empirical analysis to examine each hypothesis and provide significant findings to explore the relationship between key economic variables, their interaction effects, and their impact on the growth of the Indian economy.