A Study of Bilateral Trade Flows of China and India

Panda, Rajesh; Sethi, Madhvi; Kumaran, M.

doi:10.17485/ijst/2016/v9i15/92098

Cited by 11 publications

(13 citation statements)

References 21 publications

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“…The PPML regression results presented in Table 4.3 above on the determinants of bilateral trade within the CEMAC bloc are discussed in the following paragraphs; Firstly, it was observed that home country GDP and foreign country GDP had positive and significant impact on intra-CEMAC country to country bilateral trade blows. These findings are in conformity with the findings of other authors such as Fatima et al (2019), Irshad et al (2019), Akpoilih and Farayibi (2015), Husain and Yasmin (2015), Panda et al (2016), Iqbal and Islam (2014), Zeray and Gachen (2014), Bonuedi (2013), Khan et al (2013), Anaman and Atta-Quayson (2009), Gani (2008) and Tri Do (2006) amongst other findings.…”

Section: Presentation and Discussion Of The Ppml Regression Resultssupporting

confidence: 93%

“…The findings are in conformity with Tinbergen's (1962) gravity model that predicts that bilateral trade flows between two economies is negatively related to the distance between the two economies. These findings are also in conformity with the findings of other authors such as those of Fatima et al (2019), Irshad et al (2019), Akpoilih and Farayibi (2015), Panda et al (2016), Anaman and Atta-Quayson (2009) and Gani (2008) amongst other findings.…”

Section: Presentation and Discussion Of The Ppml Regression Resultssupporting

confidence: 93%

“…Finally, they recommended that Nigeria should adopt severe measures in the fight against corruption. Panda et al (2016) analysed the bilateral trade flows of two of the emerging economies namely China and India with an objective to draw a comparison between the determinants of bilateral trade flows of the two nations using data for a period of 9 years (2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013). Using the gravity model framework, the study employs random effects panel regression model to establish the relationship between bilateral trade flows and different variables including distance, gross domestic product, per capital income, contiguity, common language and common colonizer.…”

Section: …………………………………………………………… (21)mentioning

confidence: 99%

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The Determinants of Bilateral Trade within the CEMAC Bloc: Evidence Using the Augmented Gravity Model and the PPML Estimation Technique

2020

JESD

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Due to the relatively low levels of bilateral trade flows observed within the CEMAC bloc as well as the poor rates of economic growth observed in CEMAC member States, the study aimed to examine the determinants of bilateral trade flows within the CEMAC bloc using the Augmented Gravity model as the main theoretical framework. While secondary data for bilateral trade was obtained from IMF's Direction of Trade Statistics, secondary data for Gross Domestic Product (GDP), population size and investment in fixed capital were obtained from the World Bank's World Development Indicators and data for distance and CEMAC dummy were obtained from the Institute for Research on the International Economy (CEPII). Using the Pseudo-Poisson Maximum Likelihood (PPML) technique, the results of the study conclude that while GDP of exporting country, GDP of importing country, the existence of a border between exporting country and importing country, population of exporting country, population of importing country, physical capital of exporting country and physical capital of importing country all have positive and significant impact on bilateral trade flows within the CEMAC bloc, distance between exporting country and importing country and the creation of CEMAC as a trade bloc all have negative and significant impact on bilateral trade flows within the CEMAC bloc. Finally, the study recommends that policy makers of the CEMAC trade bloc design and implement policies and measures that are geared towards boosting the GDP of member States, investing in national and regional infrastructural projects, eradicating barriers at their respective borders, investing in the acquisition and transfer of technical and technological skills, harmonizing regional financial, economic, legal and trade policies and improving the business (investment) climate.

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Section: Presentation and Discussion Of The Ppml Regression Resultssupporting

confidence: 93%

Section: Presentation and Discussion Of The Ppml Regression Resultssupporting

confidence: 93%

Section: …………………………………………………………… (21)mentioning

confidence: 99%

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The Determinants of Bilateral Trade within the CEMAC Bloc: Evidence Using the Augmented Gravity Model and the PPML Estimation Technique

2020

JESD

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“…Their impact is negative on Pakistan's bilateral trade. Panda and Kumaran (2016) attempted to investigate the trade volume between China and India by applying the gravity model. They estimated the results through a random-effects model (Panel regression model).…”

Section: Review Of the Literaturementioning

confidence: 99%

A Gravity Model Approach towards Pakistan’s Bilateral Trade with SAARC Countries

Jan¹,

Shah²

2019

CER

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This research paper attempts to estimate the bilateral trade of Pakistan with SAARC countries using a gravity model of trade. This panel study covers the period from 2003 to 2016. The empirical results are obtained through pooled OLS, fixed‑effects, and random‑effects estimators. On the basis of Hausman test results, the paper concentrates only on the findings of the fixed‑effects model. The empirical findings reveal that the GDPs of both Pakistan and the partner country have a positive impact on bilateral trade. Market size has a negative impact on trade and this is justified on the basis of the absorption effect. Similarly, distance and exchange rate also have a negative correlation with bilateral trade. The study finds that Pakistan has very low trade with India and Afghanistan, despite the common border. A common language has a positive but insignificant impact on Pakistan’s bilateral trade. The Paper also attempts to calculate the trade potential of Pakistan. The findings reveal that Pakistan has high trade potential with all SAARC member countries except the Maldives and Afghanistan.

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“…India was a 15 th largest nation in world trade and China became world's largest nation in international trade (Panda & Sethi, 2016). Source: Author generated using World Bank data.…”

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confidence: 99%

Globalization and Foreign Trade of Pakistan with D-8 Group

Hussain¹

2018

JBTP

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Globalization has made the world smaller and flatter which is called “the death of distance”. This phenomenon has brought considerable increase in international trade in recent past. Many developing countries have been benefitted from the fruits of globalization and many other like Pakistan have lagged behind in the race. Pakistan is suffering persistently from trade deficit since 2003 and by the same point of time India, Sri Lanka and Bangladesh which share similar socio-economic conditions to Pakistan: are experiencing upward trend. This study investigates the popular theory “the gravity model of trade” in the context of Pakistan’s export flow to D-8 group. The gravity trade model has been innovated by introducing overall Globalization Index (GI) which led to improve explanatory power of gravity model. This research, in panel setting has used annual data ranging from 2003 to 2013, by employing advance estimation technique PPML, Estimator. The empirical results of the study infer that GDP, population and distance confirm the basic gravity model. While the globalization Index and contiguity variables are against the expected signs. Therfore, it is concluded that Pakistan need to explore new destinations specially should target the developing countries for its exports.

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A Study of Bilateral Trade Flows of China and India

Cited by 11 publications

References 21 publications

The Determinants of Bilateral Trade within the CEMAC Bloc: Evidence Using the Augmented Gravity Model and the PPML Estimation Technique

The Determinants of Bilateral Trade within the CEMAC Bloc: Evidence Using the Augmented Gravity Model and the PPML Estimation Technique

A Gravity Model Approach towards Pakistan’s Bilateral Trade with SAARC Countries

Globalization and Foreign Trade of Pakistan with D-8 Group

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