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Chapter IV — International competitiveness of EU industry
TAbLE IV.12: Manufactured products - World trade matrix — income level: import destination in 2009 (%)
import Eu‑27
high income
non Eu‑27
destination
upper medium
income
low medium
income
low
income
Origin EU‑27 0.0 38.0 36.1 27.4 26.8
High income non EU‑27 55.7 0.0 43.7 57.1 39.8
Upper medium income 24.2 21.1 0.0 12.8 9.1
Low medium income 18.3 37.5 18.9 0.0 24.3
Low income 1.8 3.5 1.9 2.8 0.0
World 100.0 100.0 100.0 100.0 100.0
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
manufactured products, so it does not include crude oil and other products from mining and quarrying. Detailed export data from India
were not available for 2008 in the chosen trade classification (HS2007). Exporters are shown in rows and destination markets in columns.
Each cell shows the share of total imports for a certain country from an exporting country. For example, 36.1 % of Upper medium income
countries’ imports origin in the EU‑27. The last row sums up each exporting country’s share for every importing country.
Source: own calculations using COMTRADE data.
The most widely used measure of intra‑industry trade (IIT)
is the Grubel‑Lloyd (GL) index. The GL index is sensitive
to the level of aggregation of industries or products: the
higher the level of aggregation of industries, the higher
the GL index. 75 The reason for this property of the GL index
is that the absolute value of net trade when the industries
are defined on a higher level of aggregation, e.g. 4‑digit,
box IV.6: Intra-industry trade
75 Put differently, the higher the number of industries (products),
the lower the value of the GL index.
is equal to or less than the sum of the absolute values
of net trade when the industries are defined on a lower
level of aggregation, e.g. 6‑digit. For example, net trade
with different signs on the lower level of aggregation can
cancel out at the higher level of aggregation. The index
ranges from 0 (no IIT) to 1 (all trade is intra‑industry),
cf. Box IV.6.
The GL index for product ‘i’ (where X and M stand for exports and imports, respectively) is defined as follows:
The GL index can be defined across products as follows:
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