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EU industrial structure - EU Bookshop - Europa

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Chapter IV — International competitiveness of <strong>EU</strong> industry<br />

TAbLE IV.12: Manufactured products - World trade matrix — income level: import destination in 2009 (%)<br />

import Eu‑27<br />

high income<br />

non Eu‑27<br />

destination<br />

upper medium<br />

income<br />

low medium<br />

income<br />

low<br />

income<br />

Origin <strong>EU</strong>‑27 0.0 38.0 36.1 27.4 26.8<br />

High income non <strong>EU</strong>‑27 55.7 0.0 43.7 57.1 39.8<br />

Upper medium income 24.2 21.1 0.0 12.8 9.1<br />

Low medium income 18.3 37.5 18.9 0.0 24.3<br />

Low income 1.8 3.5 1.9 2.8 0.0<br />

World 100.0 100.0 100.0 100.0 100.0<br />

Note: Due to rounding, certain columns or rows do not add up to 100 %. The matrix is calculated from import data. It refers exclusively to<br />

manufactured products, so it does not include crude oil and other products from mining and quarrying. Detailed export data from India<br />

were not available for 2008 in the chosen trade classification (HS2007). Exporters are shown in rows and destination markets in columns.<br />

Each cell shows the share of total imports for a certain country from an exporting country. For example, 36.1 % of Upper medium income<br />

countries’ imports origin in the <strong>EU</strong>‑27. The last row sums up each exporting country’s share for every importing country.<br />

Source: own calculations using COMTRADE data.<br />

The most widely used measure of intra‑industry trade (IIT)<br />

is the Grubel‑Lloyd (GL) index. The GL index is sensitive<br />

to the level of aggregation of industries or products: the<br />

higher the level of aggregation of industries, the higher<br />

the GL index. 75 The reason for this property of the GL index<br />

is that the absolute value of net trade when the industries<br />

are defined on a higher level of aggregation, e.g. 4‑digit,<br />

box IV.6: Intra-industry trade<br />

75 Put differently, the higher the number of industries (products),<br />

the lower the value of the GL index.<br />

is equal to or less than the sum of the absolute values<br />

of net trade when the industries are defined on a lower<br />

level of aggregation, e.g. 6‑digit. For example, net trade<br />

with different signs on the lower level of aggregation can<br />

cancel out at the higher level of aggregation. The index<br />

ranges from 0 (no IIT) to 1 (all trade is intra‑industry),<br />

cf. Box IV.6.<br />

The GL index for product ‘i’ (where X and M stand for exports and imports, respectively) is defined as follows:<br />

The GL index can be defined across products as follows:<br />

121

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