Measurement of intra-industry trade (ITT) of Iran with ten selective major trading partners using Grubel-Lloyd Index

This paper was conducted to measure intra-industry trade of Iran with ten selective major trading partners including the United Arab Emirates, Germany, China, Republic of Korea, Italy, India, Japan, Turkey, Spain, and Singapore using Grubel-Lloyd index. Due to the development of cross-border economic relationships, these countries try to find and present an appropriate model for production, import, and export of goods and identification of business opportunities and comparative advantages. Therefore, intra-industry trade of products helps countries to consider the differences between their real commercial comparative advantages and other countries and then try to find new technologies in their production. It can be found from estimation the average of Iran’s intra-industry trade with its major trading partners that most of Iran's trade volume during the studied period belongs to India with an average of 66.43 per cent. In other words, India is the largest trading partner of Iran in terms of intra-industry trade.