Trade Flow of India with BRICS Countries: A Gravity Model Approach

Lohani, Kuldeep Kumar

doi:10.1177/0972150920927684

Cited by 21 publications

(13 citation statements)

References 38 publications

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“…Therefore, food supply may be imported from the other ASEAN countries by Indian and Japanese importers, which results in the decrease of Vietnam's agricultural exports. In addition, the negative impact of RTAs membership in this paper is similar to relevant research of Gharleghi and Shafighi (2020), Jagdambe and Kannan (2020), Lohani (2020), and Narayan and Nguyen (2016). Moreover, Kahouli (2016) has argued that the trade creation effect of RTAs, which is proxied by the dummy variables of RTAs membership, is unstable and unpredictable.…”

Section: Robustness To the Zero Trade Issuesupporting

confidence: 84%

Globalisation, Logistics and Food Supply: Evidence from Vietnam

2021

MJES

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Most countries satisfy domestic food consumption by importing from foreign supplies, thus highlighting the role of agricultural exports in maintaining and diversifying the global food supply. In the age of globalisation, whether the flourishing number of regional trade agreements (RTAs) has been facilitating greater market access of agricultural and food products is questioned by national governments. Meanwhile, logistics performance has been the bottleneck of emerging economies, which exerts negative impacts on agricultural export competitiveness in foreign markets. Overall, the interlink between globalisation, logistics and food supply has not been addressed adequately. Therefore, this paper employs the trade gravity model to examine the relationship between agricultural exports, RTAs membership, and logistics performance in the case of Vietnam and her 97 major trading partners. Static and dynamic panel data estimation are employed with the methods applied to solving the zero trade and endogeneity concerns. Findings confirm the interlink between globalisation, logistics and food supply. RTAs-based globalisation and logistics policies are intertwined to secure and diversify import-driven food supply. The unified framework for long-term and sustainable development which aims at strengthening the interlink between globalisation, logistics, agriculture and global food supply should be considered in policy formulation.

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Section: Robustness To the Zero Trade Issuesupporting

confidence: 84%

Globalisation, Logistics and Food Supply: Evidence from Vietnam

2021

MJES

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“…The estimated coefficient on the population variable used as a proxy for the market size is positive and significant in explaining India-BRICS trade (Khayat 2019). The distance variable is also significant, with an expected negative sign, which conveys that India tends to trade more with its immediate neighboring countries among BRICS nations (Lohani, 2020;Wani & Dhami, 2016;Antinio & Troy, 2014). Interestingly, India-BRICS trade responds less than proportionally to economic size but more than proportionally to market size and distance (Bhattacharyya & Banerjee, 2006).…”

Section: Gravity Model Estimatesmentioning

confidence: 99%

Trade Integration and Export Aspiration: Evidence from India’s Trade in Goods with BRICS Countries

Bhat

Jamal

Beg

2022

OMEE

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The purpose of this study was to examine the dynamics of trade between India and the BRICS countries as well as to gauge the relative strength of Indian exports to those nations. The trade integration patterns among BRICS countries were also analyzed. To quantify the extent to which India’s exports correspond to the needs of its BRICS counterparts, a novel export aspiration index was constructed. The index of trade integration patterns has also been employed to quantify India’s trade integration pattern with other BRICS members. Further, the gravity model of trade has been employed to analyze the fundamentals of India–BRICS trade. The export aspiration in individual BRICS countries shows a diverse pattern. However, India’s export aspiration in these countries has improved, although marginally in the long run. Such empirical evidence substantiates that the relative strength of India’s exports within its BRICS counterparts has marginally improved over time. Moreover, the trade integration index indicates a similar trade integration pattern among the BRICS countries and corroborates the presence of inter-industry trade. Added to the conventional variables of the gravity model, India’s outward multilateral trade resistance and BRICS inward multilateral trade resistance significantly promote India–BRICS trade. Hence, the relative strength of Indian exports will increase substantially if India’s commodity composition is diversified by including more commodities in its export baskets that correspond to the needs and changing conditions of the BRICS economies.

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“…The functional misspecification of each of the models was then checked using the heteroscedasticity Robust Regression Specification Error Test (RESET) with the null hypothesis of no misspecification against the alternate hypothesis of the presence of misspecification problem [16,23].…”

Section: Framework Of Gravity Modelmentioning

confidence: 99%

Impact of ASEAN- India Free Trade Agreement (AIFTA) on Palm Oil Trade

Lakshmi

Shivakumar²,

Kumar³

et al. 2022

JEAI

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Aims: To analyse the trade creation and trade diversion effect of the ASEAN-India Free Trade Agreement (AIFTA) on palm oil trade among the member countries. Data and Methodology: Data on palm oil exports of major Association of South East Asian countries (ASEAN) member countries such as Indonesia (64.10%), Malaysia (31.52%), Thailand (2.18%), Singapore (1.95%) and Philippines (0.25%) were collected for the period of 21 years (2000–2020) and used for the analysis. The Gravity model by Ordinary Least Square (OLS) and Poisson Pseudo-Maximum Likelihood (PPML) methods were estimated with the panel data. Results: As expected gravity model variables the distance had a negative impact on the palm oil trade between India and ASEAN member countries. The tariff rates and export prices had a negative impact on the palm oil trade whereas; the population of ASEAN members (exporters), GDP of ASEAN members and exchange rate were insignificant. The AIFTA had a positive and significant effect on the palm oil trade from ASEAN member countries to India which denoted the trade creation effect between ASEAN members and India. Conclusion: The analysis showed a pure trade creation effect of AIFTA in the time and country fixed effect model. The results suggested that the palm oil trade could be pushed for further trade liberalisation in the AIFTA.

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Trade Flow of India with BRICS Countries: A Gravity Model Approach

Cited by 21 publications

References 38 publications

Globalisation, Logistics and Food Supply: Evidence from Vietnam

Globalisation, Logistics and Food Supply: Evidence from Vietnam

Trade Integration and Export Aspiration: Evidence from India’s Trade in Goods with BRICS Countries

Impact of ASEAN- India Free Trade Agreement (AIFTA) on Palm Oil Trade

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