An analysis of Intra Industry trade in environmental goods: a case study of BRICS countries
Student name: Ms Shruti Sharma
Guide: Dr Poornima Varma
Year of completion: 2014
Host Organisation: Centre for WTO Studies IIFT, New Delhi
Supervisor (Host Organisation): Dr Murali Kallummal
Abstract: The growing importance of intra-industry trade (the simultaneous exports and imports in the
similar industry) over the last two decades is well recognized in the literature. Also, with
increasing environmental concerns, environmental goods industry in developing nations
witnessed a sharp increase in its growth and as BRICS countries-Brazil, Russia, India, China
and South Africa, are the most rapidly developing nations, the study focuses on Intra industry
trade in environmental goods for India with the rest of the BRICS member countries. The
present study tries to analyse the composition/structure of trade in Environmental Goods for
India with rest of the BRICS members and India with the ROW.Then to disentangle the IntraIndustry
Trade into Vertical and horizontally differentiated products. Furthermore, analyzes
the country specific determinants of IIT and VIIT. Our preliminary analysis showed that the
share of India BRCS trade in India’s trade with rest of the world is increasing. Based on the
GL index, the trade between India and rest of the BRICS countries is majorly in the form of
inter industry trade, with high level of Vertical intra industry trade. The regression results
signify that determinants of intra industry trade are difference in GDP per capita and factor
endowment ratio. While VIIT depends on difference in GDP per capita, Difference in GDP,
Average GDP, distance between the countries and factor endowment ratio.
