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India’s Export Potential to Other SAARC Countries: A Gravity Model Analysis

Author

Listed:
  • Sandeep Kaur
  • Paramjit Nanda

    (Centre for South and Central Asian Studies,School of Global Relation,Central University of Punjab, Bathinda-151001 India)

Abstract

India’s export potential to other SAARC nations (Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka) was calculated with the help of gravity model of exports using panel data methodology (pooled model, fixed effect model and random effect model) by taking the time period 1981-2005. To find out the convergence and divergence of India’s exports to SAARC members, speed of convergence was used. Moreover, study has also tried to find whether there is convergence of the actual data towards the estimated equilibrium. The study reveals that there was presence of convergence in India exports with SAARC countries and in the other words, actual India’s exports to SAARC countries converged towards the estimated export potential. Among SAARC countries, India’s export potential exists for Maldives, Bhutan, Pakistan and Nepal. India is the only SAARC member that shares land border with four members and sea border with two. No other SAARC country shares a common border with each other. In terms of trade, commerce, investments etc., India is a source of potential investment and technology and a major market for products from all other SAARC members. Therefore, it is essentially in India’s interest to put her weight behind SAARC.

Suggested Citation

  • Sandeep Kaur & Paramjit Nanda, 2010. "India’s Export Potential to Other SAARC Countries: A Gravity Model Analysis," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 6(3), pages 167-184, June.
    • Handle: RePEc:jge:journl:632
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    Citations

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    Cited by:

    1. Gulshan Farooq BHAT & Dr. Sandeep Kaur BHATIA, 2017. "An Empirical Analysis Of Growth Determinants In India And South Korea: Possible Lessons For India," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 155-174.
    2. Sultan, Maryam & Munir, Kashif, 2015. "Export, Import and Total Trade Potential of Pakistan: A Gravity Model Approach," MPRA Paper 66621, University Library of Munich, Germany.
    3. Lotfali Agheli & Unes Salmani & Mir Abdullah Hosseini, 2017. "Factors Affecting Market Share of Iranian Hand-woven Carpet in Singapore," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 500-505.
    4. Mohd. FAYAZ & Sandeep KAUR, 2019. "An Empirical Analysis Of The Determinants Of India’S High-Technology Exports," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 19(2), pages 29-44.
    5. Sandeep Kaur & Sangeeta Khorana & Manpreet Kaur, 2020. "Is There Any Potential in Service Trade of South Asia?," Foreign Trade Review, , vol. 55(3), pages 402-417, August.
    6. Sandeep KAUR* & Parmjit NANDA**, 2011. "An Analysis of Actual and Potential Exports of Pakistan with SAARC Countries:A Panel Data Analysis," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 21, pages 69-91.

    More about this item

    Keywords

    international trade; gravity model; distance; SAARC;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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