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Determinants of India’s Manufactured Exports to South and North: A Gravity Model Analysis

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Author Info

  • Suresh K G

    (IBS Business School, Dehradun, India.)

  • Neeraj Aswal

    (Faculty of Science and Technology, ICFAI University, Dehradun, India.)

Abstract

We have analysed the determinants of India’s manufactured exports to its southern (developing countries) and northern (developed countries) markets. We employed an augmented gravity model to examine the determinants of India’s exports. The analysis shows that India’s exports to south and north is explained by the new trade theory variables like total GDP, GDP similarity and the difference in percapita income as an indicator of Heckschor-Ohlin theory of trade. However the distance is more negatively affecting India’s exports to north than the southern market as the proximity to southern market is helping India’s exports to grow in south.

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Bibliographic Info

Article provided by Econjournals in its journal International Journal of Economics and Financial Issues.

Volume (Year): 4 (2014)
Issue (Month): 1 ()
Pages: 144-151

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Handle: RePEc:eco:journ1:2014-01-14

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Related research

Keywords: South-South trade; South-North trade; Gravity model;

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  8. Peter Egger, . "A Note on the Proper Econometric Specification of the Gravity Equation," WIFO Working Papers 108, WIFO.
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