Measuring Intra - Trade Industry between Iran and the European Economic Community in Horticultural Products: An Application of Grubel- Lioyd and Aquino Indices

This paper attempts to introduce two indices for measuring the level of Intra-industry Trade (IIT) between Iran and the members of the European Economic Community (EEC) according to five agricultural product groups. For this purpose, the indices suggested by Grubel-Lioyd and Aquino, were employed and explained how these indices obtained. The required data and information were collected from the year books and the internet site of “Iran Trade Point”. In general, the measured indices indicated a low level of trade between Iran and the members of EEC. In three groups, export value was higher than import value. On the contrary, for the two another groups of cereals and flowers, the import values were higher in most years. But in general, there wasn't seen any certain trend in indices values. In addition, many uses of these two indices also explained. Because Intra-Industry Trade is a new subject, further study and research seems to contribute to the economic communities specially in Iran.