Trends in Croatian Intra-Industry trade – Marginal Intra-Industry trade of selected sectors

In analysing the foreign trade, it is useful to distinguish between three types of international trade – Heckscher-Ohlin-Samuelson trade, intra-industry trade and local (cross-border) trade. The first is driven by differences between economies in their relative endowments of factors of production. Local cross-border trade may be driven by fine distinctions of comparative advantage, by convenience as a result of the way frontiers and communications and transportation networks relate to each other. The concept of intra-industry trade extends the principle of comparative advantage to include fine differences in endowments of specific subfactors of production, usually based on specific elements of human capital or technological capability. In trade between developed industrial economies dominated is intra-industry type of trade. Aim of this paper is dinamic analises of Croatian intra-industry trade with Brulhart’ s index of marginal intra-industry trade, or indirect measurement of Croatian integration in European and global trade flows in sector 5 according to SITC (chemical products).