چكيده لاتين :
Early trade liberalization in the East Asian newly industrialized econormes took place against a backdrop of rapid growth. Later, following the instability of the international economy in the late 1970s/early 1980s, several developing countries adopted major
economic reforms including trade liberalization somehow in the
form of preferential trade agreements. Increasing openness and
mutual trade relations are likely to be associated, not only with
increasingly cOISיetitive product markets but also with intra
industry trade (Illי), that is, the simultaneous exports and imports of
products within the same industry. Intra industry specialization has
attracted considerable attention in recent years, and an increasing
number of researchers have developed econometric models to
explain intra industry trade. This paper has two objectives. First it
strives to calculate the extent of bilateral intra industry trade of Iran
and Malaysia, using Grubel & Lloyd index at the 6-digit level of
harmonized tariff schedule over the years 1997-2001. Secondly,
some of the various sources of intra industry trade are combined In
a panel gravity method to explore the impact of implementing any
PTA between two countries on the bilateral Iran-Malaysia trade
relations. The results of our econometric study support the
hypotheses put forward in literature as far as the common
characteristics of the countries in question are concerned. Thus, the
regression coefficients of the average gross national income, Linder
variable, average country size, inequality in country size, distance,
and preferential trade aweement all have the expected sign and are
statistically significant In 10 percent level in the fixed effect model.
The findings support our hypothesis, showing that preferential trade
agreement plays a significant role in the rapid increase of lIT
between the two countries.
