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Is there reciprocity between India and RCEP member countries' goods trade?

Author

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  • Changping Zhao
  • Xinli Qi
  • Yu Gong
  • Xiaoling Feng
  • Xuping Cao
  • Yun Zhang

Abstract

In early November 2019, India announced its withdrawal from the Regional Comprehensive Economic Partnership (RCEP) Agreement, and stated that there is a non-reciprocal trade relationship with RCEP member states, this incident has aroused extensive discussions between India and the international community. We take reciprocity as the perspective and discuss the following three theoretical propositions: (1) Can the reciprocity coefficient be used as a basis for decision-making? (2) What is the influence mechanism of the reciprocity coefficient? (3) How will the reciprocity of RCEP changes in the future? We find that the reciprocity index is a result indicator of trade policy and trade network status. It is affected by the trade policy and trade status of related countries in the short term. It can be regarded as a warning and decision-making reference directional indicator. However, it cannot be used as a basic index for trade policy adjustments, India should reconsider this decision or choose other ways to participate in RCEP's regional cooperation.

Suggested Citation

  • Changping Zhao & Xinli Qi & Yu Gong & Xiaoling Feng & Xuping Cao & Yun Zhang, 2024. "Is there reciprocity between India and RCEP member countries' goods trade?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 29(1), pages 112-133, January.
    • Handle: RePEc:taf:rjapxx:v:29:y:2024:i:1:p:112-133
    DOI: 10.1080/13547860.2021.1991088
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