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This paper is a preliminary study of intra-industry trade - the simultaneous export and import of the products of the same industry - Philippines the Philippines from Industry to 1979. Industry as defined in this study corresponds to the product aggregations at the two- and one-digit (Standard International Trade Classification). SITC (Standard International Trade Classification). Intra-industry trade accounted for less than 10 percent of the total value Philippine Philippine trade 70s, the 70s, with a shift in concentration from primary products to manufactures 40s from the Interindustry to the 60s. Interindustry 1969 onwards, grew rapidly from 1969 onwards, amounting to over 20 percent of total trade in any year between 1975 and 1979 with manufactures contributing the bulk of annual increments. A close correlation of the variation in intra- industry trade between product groups was established for measurements using either commodity or industry classification schemes as a data base, at least The 1969 and 1974. The distribution of re-exports and special transactions to their specific product groups for the 1976 to 1979 data significantly altered the measure among manufactured products; however, variation between groups accorded with the undistributed case when all product groups v1ere considered. Finally, scale economies, one of the principal explanations for intra-industry trade in developed countries, correlated negatively with Philippine trade in Philippine industries in A similar, and 1974. A similar, though less marked, tendency was And in the product-cycle/technology-gap explanation. And among Philippine industries, the increment in intra-industry trade from 1976 to 1979 correlated positively with import growth, suggesting the possibility of its deleterious impact on the trade balance.

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