An Analysis of Determinant Factors in Agricultural Trade between India and ASEAN


Published On: 2021-06-14 10:58:40

Price: ₹ 500



Author: Pranesh Pandey and Manesh Choubey

Author Address: Ph.D. Scholar, and Professor, Department of Economics, Sikkim University, Gangtok-737102 (Sikkim)

Keywords: Agricultural trade, determinants, gravity model, trade intensity

JEL Codes: C13, C33, F00, F10, F14


Abstract

Considering the significance of trade relation between India and ASEAN, the present study was conducted to analyze the determinants of India-ASEAN trade in agricultural products. This study incorporated HS 2-digit codes from 01 to 24 chapters, which constituted 85 percent of the total chapter falling under agricultural products. To perceive the significance of ASEAN as a major trading partner, shares of India's trade with ASEAN relative to the world was computed via trade intensity approach. Furthermore, the gravity model was employed to witness the determinants of agriculture trade between the two trading partners. The study found that the GDP of ASEAN and India, the common border between the two trading blocs, was positive and significant. The variable distance and landlocked was observed to be negative and significant, which confirmed that trade would decrease if distance increases and if the country was landlocked, respectively. Interestingly, variables like FTA, GDP of India, common language, and common colony showed no significant effect on the bilateral trade.


Description

Indian Journal of Economics and Development
Volume 17 No. 2, 2021, 314-320

DOI: https://doi.org/10.35716/IJED/20219
Indexed in Clarivate Analytics (ESCI) of WoS
Scopus: Title Accepted
NAAS Score: 5.15