India in the Global and Regional Trade - Determinants of Aggregate and Bilateral Trade Flows and FirmsÃ¢â‚¬â„¢ Decision to Export
AbstractThis paper contributes to two strands of literature on empirical models of trade flows and trade policy. The first and the older strand is that of gravity models of bilateral trade flows going back to Hans Linneman (1966) and Tinbergen (1962) and its recent applications, particularly by Adams et al (2003) and De Rosa (2007) in analyzing the impact of Preferential Trade Agreements (PTAs). Our focus is on applying the gravity model to analyze Indias trade flows (exports and imports) with its trading partners around the world and to examine the impact of various PTAs in which India or its trading partner or both are members. Clearly this is of interest, since, from 1991 India is aggressively negotiating and concluding PTAs of which South Asian preferential trade (and later free trade) agreement is the most prominent. We find that India is not well served by its pursuit of PTAs and should instead push for multilateral trade liberalisation by contributing to conclusion of the Doha round of negotiations with an agreement beneficial to all WTO members. The second and the more recent strand is the analysis of trade flows using data on exports of individual firms. It is well known that in all countries of the world relatively few firms participate in world trade, thus suggesting that characteristics of a firm (such as its size and productivity) are relevant besides country level barriers on trade matter for participation in world trade. This strand is rapidly growing. Ours is one of the very few attempts at modeling and estimating the decision of Indian firms on their participation using firm level data. The paper reports on our preliminary results. We have also collected primary data from a sample survey of firms to explore this issue deeper. While these data are yet to be fully analyzed, nevertheless some preliminary descriptive tables summarizing them are included in an Appendix.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22261.
Date of creation: Jan 2009
Date of revision:
Contact details of provider:
Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
More information through EDIRC
Non-discriminatory trade liberalisation; Gravity Model; Intrabloc trade effect; trade diversion; trade creation; Firm heterogeneity; Probability of exporting; Export performance; Logit; Probit; Fixed effect; Random effect; Tobit Model;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reinhilde Veugelers & Bruno Cassiman, 2000.
"Importance of international linkages for local know-how flows. Some econometric evidence from Belgium,"
Economics Working Papers
434, Department of Economics and Business, Universitat Pompeu Fabra.
- Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Importance of international linkages for local know-how flows. Some econometric evidence from Belgium," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/102905, Katholieke Universiteit Leuven.
- Cassiman, Bruno & Veugelers, Reinhilde, 1999. "Importance of International Linkages for Local Know-How Flows: Some Econometric Evidence From Belgium," CEPR Discussion Papers 2337, C.E.P.R. Discussion Papers.
- Soloaga, Isidro & Alan Wintersb, L., 2001.
"Regionalism in the nineties: what effect on trade?,"
The North American Journal of Economics and Finance,
Elsevier, vol. 12(1), pages 1-29, March.
- Soloaga, Isidro & Winters, L. Alan, 1999. "Regionalism in the Nineties: What Effect on Trade?," CEPR Discussion Papers 2183, C.E.P.R. Discussion Papers.
- J. M. C. Santos Silva & Silvana Tenreyro, 2006.
"The Log of Gravity,"
The Review of Economics and Statistics,
MIT Press, vol. 88(4), pages 641-658, November.
- Brian Aitken & Gordon H. Hanson & Ann E. Harrison, 1994.
"Spillovers, Foreign Investment, and Export Behavior,"
NBER Working Papers
4967, National Bureau of Economic Research, Inc.
- Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
- Aitken, B. & Hanson, G.H. & Harrison, A.E., 1994. "Spillovers, Foreign Investment and Export Behavior," Papers 95-06, Columbia - Graduate School of Business.
- Thierry Mayer & Gianmarco Ottaviano, 2008.
"The Happy Few: The Internationalisation of European Firms,"
Intereconomics: Review of European Economic Policy,
Springer, vol. 43(3), pages 135-148, May.
- Gianmarco Ottaviano & Thierry Mayer, . "The happy few: the internationalisation of European firms," Blueprints, Bruegel, number 12, 12.
- Van Biesebroeck, Jo, 2003.
"Exporting raises productivity in Sub-Saharan African manufacturing plants,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/253801, Katholieke Universiteit Leuven.
- Johannes Van Biesebroeck, 2003. "Exporting Raises Productivity in Sub-Saharan African Manufacturing Plants," NBER Working Papers 10020, National Bureau of Economic Research, Inc.
- World Bank, 2013. "Pakistan : Finding the Path to Job-Enhancing Growth," World Bank Other Operational Studies 15979, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong).
If references are entirely missing, you can add them using this form.