Trade Flows between India and Other BRICS Countries: An Empirical Analysis Using Gravity Model

Mishra, Aswini Kumar; Gadhia, Jigar N.; Kubendran, N.; Sahoo, Makara

doi:10.1177/0972150914553523

Cited by 23 publications

(23 citation statements)

References 25 publications

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“…The study also highlighted that the Free Trade Agreement (SAFTA) helped the trade creation among SAARC countries. Mishra et al (2015) while examining the trade flows between India and BRICS countries by using a gravity model found the positive relationship between GNP and volume of trade. However, the transport cost found negative in influencing the trade.…”

Section: Review Of Literaturementioning

confidence: 99%

An empirical analysis of India’s trade in goods with BRICS

Maryam

Mittal

2019

Int Rev Econ

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The purpose of this paper is to examine the empirically the trade flows between India and BRICS. The bilateral revealed comparative advantage index (BRCA) is computed for the assessment of comparative advantages of exports by India to BRICS countries for period 2001-2015. In addition, the trade complementarity index (TCI) between India and remaining BRICS countries is examined. The study has employed the gravity model of trade to find the role of selected variables on promoting India's trade with BRICS countries. The findings of BRCA concluded that India holds a comparative advantage predominantly in agricultural and allied products followed by manufacturing and man-made products. BRCA analysis indicated minor structural changes between the years 2001 and 2015 for India's export basket with BRICS countries. The higher TCI values suggested the scope of trade potential between India and BRICS countries. The results of panel gravity model for exports, imports and trade showed that most of the variables have the expected sign and are statistically significant. Results suggested that among the other variables, GDPs of trading countries and population can explain export, import and total trade flows. One of the major findings of the gravity analysis confirmed that distance acts negative, as a major constraint in increasing the trade flows of India with BRICS.

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Section: Review Of Literaturementioning

confidence: 99%

An empirical analysis of India’s trade in goods with BRICS

Maryam

Mittal

2019

Int Rev Econ

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“…Decades of non-reciprocal preferential access granted to the African, Caribbean and Pacific (ACP) group of countries to European Union (EU) markets effectively came to an end in December 2007 with the initialling of a new Economic Partnership Agreement (EPA) between the EU and CARIFORUM 1 countries. The Cotonou Agreement, as well as its predecessors (the various Lomé Conventions), was designed to offer ACP countries special access to EU markets in order to aid in their development; it has been widely acknowledged that an increase in trade resulting from a deeper economic integration can sustain economic growth of a region and by the extension of the global economy (Banik & Yoonus, 2012; Mishra, Gadhia, Kubendran, & Sahoo, 2015).…”

Section: Introductionmentioning

confidence: 99%

Estimating the Trade and Revenue Impacts of the European Union–CARIFORUM Economic Partnership Agreement: A Case Study of Barbados

Lorde

Alleyne

2018

Global Business Review

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This article estimates the trade and revenue impacts of implementation of the European Union Economic Partnership Agreement (EPA) in Barbados. The simulations show that the trade and revenue impacts of the EPA in Barbados depend critically on whether the rates applied are the statutory or not. When the rates charged differ from statutory rates, overall imports are expected to rise, revenues fall and trade diverted to the European Union (EU), primarily from the USA. Conversely, application of statutory rates would result in lower imports, greater revenues and trade diverted primarily to Barbados’ other trade partners, particularly the USA. Despite the differences between both scenarios, the overall trade and revenue impacts on Barbados are likely to be small. This is likely due to the list of excluded products, which are among the most protected, and which make up a substantial fraction of all goods imported from the EU.

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“…They have the potential to expand world trade by bringing regional countries to international markets. Mishra et al (2015) provide a theoretical and applied framework for studying trade relations of the BRICS countries with the help of the gravity model. It is established that Russian trade integration is based on the Heckscher-Ohlin framework, while other BRICS members adhere to the Linder hypothesis of trade pattern (Rasoulinezhad & Jabalameli, 2018).…”

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confidence: 99%

“…The gravity model helps in estimating general trade functions (Davidova, 2015). Bilateral trade between India and other BRICS nations is studied using the gravity model which shows that there is a positive relationship between GNP and volume of trade between the nations, but transportation cost shows negative influence in the context of trade (Mishra et al, 2015). Similarly, the panel data technique is used to study trade relations between Bangladesh and BRICS with the help of a modified gravity model in which GDP, per capita GNI, and real exchange rate are used as variables for drawing significant inferences (Kundu, 2015).…”

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confidence: 99%

Quantitative dynamics of intra-BRICS trade

Rahman

Fatima²,

Rahman

2020

BJE

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The study uses an augmented gravity model to analyse intra-BRICS trade flows and the potential for establishing economic cooperation. It examines trade relations between BRICS with the help of the gravity model of international trade. Panel data from 2000 to 2017 were reviewed for bloc analysis of 20 trade partners. The analysis of the intra-BRICS trade flows is based on the Heckscher-Ohlin model. The results obtained confirm that the intra-BRICS trade relations have a sound positive impact on economic performance in these countries. Market size and economic index have a beneficial effect on the intra-BRICS trade flows. Market size is very elastic to trade, while trade tariffs and taxes within BRICS are manageable. Hence, the intra-BRICS trade has the potential to create strong economic ties within the member countries, and cooperation between the BRICS countries can have a significant influence on the globalisation of the world economy.

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Trade Flows between India and Other BRICS Countries: An Empirical Analysis Using Gravity Model

Cited by 23 publications

References 25 publications

An empirical analysis of India’s trade in goods with BRICS

An empirical analysis of India’s trade in goods with BRICS

Estimating the Trade and Revenue Impacts of the European Union–CARIFORUM Economic Partnership Agreement: A Case Study of Barbados

Quantitative dynamics of intra-BRICS trade

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