India and trade blocs: A gravity model analysis

This paper analyses the trading relationship of India with major trade blocs which includes EU, NAFTA and ASEAN weather the trade flow indeed affected by the GDP (Income), Distance, tariff and per capita GDP by using gravity model on the panel data from the period of 1991 to 2017. The panel data is...

Full description

Saved in:
Bibliographic Details
Published in:Theoretical and applied economics 2020-12, Vol.XXVII (4), p.217-232
Main Authors: Arjun SINGH, Dr. S.P. PADHI
Format: Article
Language:English
Subjects:
asean
economic integration
gravity model
nafta
trade
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper analyses the trading relationship of India with major trade blocs which includes EU, NAFTA and ASEAN weather the trade flow indeed affected by the GDP (Income), Distance, tariff and per capita GDP by using gravity model on the panel data from the period of 1991 to 2017. The panel data is examined by the Multi-level mixed effect model with linear regression and ML method of estimation is used for estimating the model. The study will attempt to examine the trade bloc which has significant trade with India as per the gravity model is a concern. The study found that the distance negatively affecting the trade flow for EU and NAFTA which is as per theoretically expectations while in case of ASEAN its positively affecting the trade flow which is not as per theoretical expectations, However the coefficient is not significant. GDP is negatively and insignificantly affecting the trade flow between India and ASEAN and NAFTA whereas GDP is negatively and significantly affecting the trade flow between India and EU.
ISSN:1841-8678
1844-0029