Determinants of Intra-Industry Trade Between Zimbabwe and Its Trading Partners in the Southern African Development Community Region (1990-2006)‪.‬

INTRODUCTION According to (1), (5) intra-industry trade involves trade in differentiated products, that is, trade in goods that belong to the same industry. A great deal of international trade involves the exchange of differentiated products of the same industry or broad product group. There is vertical integration where products are ranked according to the levels of all characteristics being augmented or lowered for some others, for example, cars of different series. Horizontal integration between two products involves ranking products according to levels of characteristics being augmented while it is lowered for others, for example different versions of a car. Inter-industry trade involves trade in commodities that are completely different; and belong to different industries, such as textiles and motor industries. Since the Southern African Development Community (SADC) region is composed of countries of almost the same economic structure, trade among these countries is mainly intra-industry trade.