UPB BUCARAMANGA. Intra-industry trade and export specialization: the Dominican Republic and Colombia case

Some industries and firms lead the economic development and growth especially in less developed countries. Linking lead industries and firms is a significant challenge for countries that are promoting skilled local suppliers as a necessary tool for becoming member of an industry-driven productive chain. Globalization and the processes in integration are highly impacting the international trade system and push countries around the world to revise and modify industry structure over time. Today, intra-industry trade is a significant and continually growing international segment constituting approximately one-fourth of global trade, more than 60% of European trade and 20 % of Japan trade (Bernatonyte & Normantiene, 2007).
ITT has impacted the volumes of production, export and import in various sectors of the economy of these countries, leading to changing nature of international trade and its structure of goods (Bernatonyte & Normantiene, 2009). As the regionalization efforts of international trade strengthen, the Dominican Republic and Colombia are now analyzing the possibilities of a
Free Trade Agreement (FTA) to improve their trade positions in Latin America.
It is a must for countries willing to consolidate an FTA to examine the
complementary trade structure to be exploited for mutual advantage.