The significance of intra-indutry trade in development of Lithuanian international trade

Purpose of the article The significance of intra-industry trade lies in the fact that intra-industry trade is an important and constantly growing modern international sector. It has an importance to the changes of economics, export and import structure of separate countries. Today, this is one of the reasons for attention to this form of trade of many researchers. The contribution of the article consists in identification the influence of the economic crisis and Russian embargo on the changes of nature and pattern of Lithuanian international trade and intra-industry trade development. Methodology/methods In order to examine the significance of intra-industry trade in Lithuanian international trade development two approaches are adopted. The Grubel-Lloyd index was used to calculate the intensity of intra-industry trade and thus to determine its relative importance compared to inter-industry trade. Secondly, the index of marginal intra-industry trade was used to examine changes in trade flows over time. Scientific aim The aim of this article is to estimate the significance of intra-industry trade in Lithuanian international trade development under existing conditions. Findings On the basis of standard international trade classification (SITC), Grubel-Lloyd and marginal intra-industry trade indices were established the significance of intra-industry trade in the development of trade structure between Lithuania and the EU. It was found that trading in food, drink, tobacco, raw materials, machines and means of transport, chemical products, and other manufactured goods dominate between Lithuania and the EU. Conclusions It was determined that Lithuanian intra-industry trade is the most important and constantly increasing sector of international trade. The research shows that huge differences in separate groups of goods prevail in Lithuanian intra-industry trade and nature and pattern of Lithuanian international trade are changing.