Question
Given: • Exports (X) = 300 • Imports
(M) = 200 Calculate the Intra-Industry Trade (IIT) Index, also known as the Grubel-Lloyd Index.Solution
The Grubel-Lloyd Index (IIT) is calculated as: 1−(∣X−M∣/ X+M ). Given Exports (X) = 300 and Imports (M) = 200: IIT = 1−(∣300−200∣/300+200) IIT = 1−(100/500) IIT = 1−0.2 IIT = 0.80
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