Grubel–Lloyd index

The Grubel -Lloyd index ( Grubel by Herbert and Peter Lloyd) measures the extent of intra- sectoral trade, the ratio of the absolute net exports of a product i in relation to the sum of exports and imports of the product i The two economists published the index for the first time in 1975.

Later on, alternate versions of the code, such as the Glesjer index and the mountain beach index were established.

Formula

Interpretation

The share of intra-industry trade in total trade of the country is an indication of the similarity of business cycles within an industrial sector. An example is the comparability of the automotive industry with other countries within the euro area. The higher the index, the more spread -specific shocks from all the countries under consideration and thus act on synchronicity ( parallel runs ) the economic cycles back.

Are trade linkages exclusively intra-industry type, the index takes the value 1, only interindustriellem exchange of goods, he tends to zero.

Will emerging markets compared with industrialized countries, problems occur. An above-average growth of the developing economy distorts related to absolute magnitude code. National differences as possible contrasts between urban centers and rural areas can also lead to distortions.