Effects of ASEAN-India Free Trade Agreement on agricultural trade: The gravity model approach

Jagdambe, Subhash; Kannan, Elumalai

doi:10.1016/j.wdp.2020.100212

Cited by 45 publications

(42 citation statements)

References 28 publications

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“…Countries with high production capacities tend to specialize in and export more COVID-19 goods, whereas countries with high consumption capacities are likely to import more COVID-19 goods. These findings are in line with our hypothesis and support Jagdambe and Kannan's (2020) argument that higher GDPs in exporting countries are associated with greater production and availability of goods for trade, whereas higher GDPs in trading partners are related to greater purchasing power. We also find that 1% increases in the similarities of GDP and GDP per capita between ASEAN countries and their trading partners are likely to increase bilateral trade in COVID-19 goods by approximately 0.20% and 0.01%, respectively.…”

Section: Estimation and Resultssupporting

confidence: 92%

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Is Trade in COVID-19 Products in ASEAN Economies a Building or Stumbling Block?

Uttama

2021

Journal of Economic Integration

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Stumbling blocks to regional integration continue to pose a serious threat to the World Trade Organization (WTO), particularly during the COVID-19 pandemic. This study aims to examine the effect of regional economic integration on trade in COVID-19 products for Association of Southeast Asian Nations (ASEAN) countries using quarterly data for 2010-2020. A panel data model is estimated using the Poisson pseudo-maximum likelihood approach to address zero trade values, cross-sectional dependence, and heterogeneity problems. The findings of a case study on bilateral trade in COVID-19 products reveal that the ASEAN regional trade agreement is a stumbling block to the WTO's rules-based multilateral trading system. The results indicate that the home country's productive capacity, the host country's absorptive capacity, the countries' similarity in size and per capita income, and the countries' remoteness have positive and significant relationships with trade in COVID-19 products in ASEAN economies. This study provides several policy implications for Southeast Asian countries.

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Section: Estimation and Resultssupporting

confidence: 92%

“…Interestingly, a contiguous (inland) border between trading countries has a positive and significant relationship with bilateral trade. Jagdambe and Kannan (2020) show that the partner country's GDP and population impact agricultural trade flows positively and significantly,…”

Section: H1mentioning

confidence: 99%

Is Trade in COVID-19 Products in ASEAN Economies a Building or Stumbling Block?

Uttama

2021

Journal of Economic Integration

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“…This in turn, increases production and the overall output available for export. These results are in line with the findings of Jagdambe and Kannan (2020), and, Abidin and Sahlan (2013).…”

Section: The Effect Of Economic Policy Uncertainty On Imports (Ols Ansupporting

confidence: 92%

Economic Policy Uncertainty and International Trade: A Gravity Model Approach

Mawusi

2020

Preprint

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Considering the increasing exposure of firms to global policy shocks, this paper study the bilateral trade adjustments to the increases in economic policy uncertainty (EPU) of 126 countries over the period 1996-2014. We employ a gravity model and a robust Poisson Pseudo Maximum Likelihood (PPML) estimator that mitigates the problem of heteroscedasticity and zero trade flows. The results show that large variations in bilateral trade can be explained by the changes in economic policy uncertainty. Whereas heightened EPU from partner countries has a positive spillover effect on imports to the reporting country, we find a negative and statistically significant effect of domestic EPU on exports.

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“…The country pairs expecting a large trade gain from RTAs and having a high probability of conflict are more likely to sign an RTA (Martin et al, 2012). In AIFTA, EU-15 and Southern Common Market (MERCOSUR), the effect of trade creation seemed to be more than that of the trade diversion effects in agricultural bilateral trade (Jagdambe & Kannan, 2020). Similarly, Sun and Reed (2010) also found that the trade creation has larger effect for the ASEAN–China RTAs, Common Market for Eastern and Southern Africa (COMESA), EU-15, EU-25 and Southern African Development Community (SADC), mainly in agricultural trade.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of India-ASEAN Free Trade Agreement: An Assessment from the Trade Creation and Trade Diversion Effects

Singh

2021

Foreign Trade Review

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This article investigates the impacts on the India–Association of Southeast Asian Nations (ASEAN) Free Trade Agreement (IAFTA) on trade creation and trade diversion. The gravity model is employed, where multilateral resistance terms are included. A panel data set of 45 countries that included India, ASEAN-10 nations and India’s top 34 trading partners in 2018 were used for the period from 1996 to 2018. The article explored that IAFTA leads to a trade creation in total bilateral trade in terms of exports and imports. The analysis further explored that the import creation effect was higher than that of the export creation effect.

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Effects of ASEAN-India Free Trade Agreement on agricultural trade: The gravity model approach

Cited by 45 publications

References 28 publications

Is Trade in COVID-19 Products in ASEAN Economies a Building or Stumbling Block?

Is Trade in COVID-19 Products in ASEAN Economies a Building or Stumbling Block?

Economic Policy Uncertainty and International Trade: A Gravity Model Approach

Impact of India-ASEAN Free Trade Agreement: An Assessment from the Trade Creation and Trade Diversion Effects

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