Do free trade agreements promote intra-industry trade? The case of India and its FTAs

Ramakrishnan, Anjali; Varma, Poornima

doi:10.1504/ijtgm.2014.062855

Cited by 6 publications

(4 citation statements)

References 18 publications

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“…Table 2 also shows that India maintains a dominant position in terms of value regarding export to the region, which no other country is even closely comparable to, a situation which is not found in other trading blocks of the world (Kumar & Singh, 2009; Ramakrishnan & Verma, 2014; Taneja & Sawhney, 2007; Taneja et al, 2011, 2013). It is known that the exports to the region by Afghanistan (Ahmed, 2018) and the Maldives were less than one per cent of India’s exports to the region, while those of Bangladesh and Bhutan were merely two per cent of India’s exports to South Asia.…”

Section: Safta Effects On Intra-south Asia Export Import and Total Tmentioning

confidence: 87%

Trade within South Asia: Unrealistic Expectations

Akram

2020

South Asia Research

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This article analyses the causes of low intra-regional trade connections within South Asia, which have remained disappointing despite the long-awaited launch of the South Asian Free Trade Area (SAFTA) on 6 January 2004 in Islamabad. Analysis of World Bank data and other relevant sources for the period 1995–2018 shows that trade among SAFTA members has not increased as significantly as had been hoped. The statistical analysis undertaken confirms what was suspected by many observers, as it shows that the SAFTA countries are not actually natural trading partners. Rather they are often competitors, seeking to export the same product groups. Since this makes the prospects of future substantial increase in mutual trade unlikely, the article concludes with some reflections about how to strengthen regional trade support mechanisms.

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Section: Safta Effects On Intra-south Asia Export Import and Total Tmentioning

confidence: 87%

Trade within South Asia: Unrealistic Expectations

Akram

2020

South Asia Research

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“…Recent studies on IIT have focused on the role of free trade agreements in promoting IIT [16], pattern and growth of IIT across countries and regions [17], the relationship between IIT and demand for child labor [18], determinants of IIT in automotive and electrical appliances sector [19]. Studies have also examined the role of domestic innovation and firm heterogeneity on IIT [20], and the effect of IIT on environment among others [21].…”

Section: Studies On Intra-industry Tradementioning

confidence: 99%

Examining Intra-Industry Trade between India & China: Is India on the Right Track?

Dwesar¹,

Kesharwani²

2019

TEL

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Massive growth in Industrialization and Gross Domestic Product (GDP) and a stronger relation between India and China have led to an increase in bilateral trade between the two countries. This paper examines the intensity of Intra-Industry Trade (IIT) between India and China using A-Index over a two-decade period (1999 to 2018). Further, the study examines trade patterns of commodities traded between the countries and how have they changed over the years. The study used data of 99 commodities and conducts a decade wise comparison. Recent developments and policy changes on the bilateral trade front between India and China have also been discussed. The research has important implications for policymakers, economists and business involved internal trade. KeywordsIndia-China Bilateral Trade, Intra-Industry Trade, India-China Trade Deficit from the late 1980s as the economies within the heterogeneous region have flourished. This can be attributed to the increased regional capital flow, trade, and other forms of economic and political interactions. The region has recognized

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“…However, empirical evidence and real-life scenarios indicated that countries with similar resource endowments have also been able to enhance their level of trade, often trading commodities within the same industry group and taking advantage of product differentiation and scale economies. The available studies in the context of intra-industry trade (IIT) in SAFTA region (Ramakrishnan and Varma 2014) show that the intra-regional trade exhibits inter-industry trade. Even the limited IIT is also in the form of vertical IIT where trade takes places within the same product category due to differences in quality rather than other attributes.…”

Section: Low Degree Of Intra-industry Tradementioning

confidence: 99%

SAARC Geopolitics and Trade

2015

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The South Asian Association for Regional Cooperation (SAARC) region is bestowed with geographical, historical and cultural continuity and yet it remains one of the least integrated regions of the world. This article attempts to analyse the factors inhibiting the economic integration of the region. The intra-SAARC trade is analysed in view of the existence of a free trade agreement between the member nations. The socio-development, infrastructural and economic indicators of the nations are also compared. The reasons for the existence of mistrust and hostility between the SAARC countries are discussed, from India’s evident dominant position in the group as a cause for insecurity among other members to the political standoffs between the member nations. While there exists immense potential for greater economic integration and gains from trade, the lack of basic transport-transit connectivity, technical harmonisation and non-tariff barriers are found to reinforce trade costs and inhibit legal trade. Ensuring better connectivity is recognised as a prerequisite by the nations unanimously; however, their political differences have kept them away from making much headway in this regard.

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Do free trade agreements promote intra-industry trade? The case of India and its FTAs

Cited by 6 publications

References 18 publications

Trade within South Asia: Unrealistic Expectations

Trade within South Asia: Unrealistic Expectations

Examining Intra-Industry Trade between India & China: Is India on the Right Track?

SAARC Geopolitics and Trade

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Do free trade agreements promote intra-industry trade? The case of India and its FTAs

Cited by 6 publications

References 18 publications

Trade within South Asia: Unrealistic Expectations

Trade within South Asia: Unrealistic Expectations

Examining Intra-Industry Trade between India &amp; China: Is India on the Right Track?

SAARC Geopolitics and Trade

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About

Examining Intra-Industry Trade between India & China: Is India on the Right Track?