Grubel–Lloyd index
Encyclopedia
The Grubel–Lloyd index measures intra-industry trade
of a particular product. It was introduced by Herb Grubel
and Peter Lloyd in 1971.
where Xi denotes the export
, Mi the import
of good i.
If GLi = 1, there is only intra-industry trade, no inter-industry trade. Conversely, if GLi = 0, there is no intra-industry trade, only inter-industry trade.
Intra-industry trade
Intra-industry trade refers to the exchange of products belonging to the same industry. The term is usually applied to international trade, where the same kinds of goods or services are both imported and exported.-Examples:...
of a particular product. It was introduced by Herb Grubel
Herb Grubel
Herbert G. Grubel is a former Canadian politician. He represented the electoral district of Capilano—Howe Sound in the Canadian House of Commons from 1993 to 1997....
and Peter Lloyd in 1971.
where Xi denotes the export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
, Mi the import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
of good i.
If GLi = 1, there is only intra-industry trade, no inter-industry trade. Conversely, if GLi = 0, there is no intra-industry trade, only inter-industry trade.