An empirical study on factors affecting intra industry trade in the manufacturing sector of selected countries

The purpose of this study is to testthe relationship between the intra-industry trade, that have recently attracted attention on itself and have an important place in national economies, and selected variables. This research was implemented with data respecting to manufacturing sector in the range of 2000-2016 for the top ten economies in 2016. In this research, the relationship between intra-industry trade and market size, economic development level, foreign direct investment, trade imbalance, and outward openness variables were tested by using panel causality analysis. Parallelism was observed between results which obtain from research and results in the previous researchs. According to analysis results, there are mutual positive relationship between the intra-industry trade and the level of economic development, the market size and foreign direct investment, while there is a mutual negative relationship between the intra-industry trade and outward openness. Additionally, there is an unilateral negative relationship between the intra-industry trade and trade imbalance.