Advanced Search
MyIDEAS: Login

Does the Gravity Model Explain India Direction of Trade? A Panel Data Approach

Contents:

Author Info

  • Bhattacharyya Ranajoy
  • Banerjee, Tathagata
Registered author(s):

    Abstract

    In this paper we apply the gravity model to the panel consisting of India’s yearly bilateral trade data with all its trading partners in the second half of the twentieth century. The main conclusions that emerge from our analyses are: (1) The core gravity model can explain around 43 per cent of the fluctuations in India’s direction of trade in the second half of the twentieth century (2) India’s trade responds less than proportionally to size and more than proportionally to distance (3) Colonial heritage is still an important factor in determining India’s direction of trade at least in the second half of the twentieth century (4) India trades more with developed rather than underdeveloped countries, however (5) size has more determining influence on India’s trade than the level of development of the trading partner.

    Download Info

    If 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.
    File URL: http://www.iimahd.ernet.in/assets/snippets/workingpaperpdf/2006-09-01tathagata.pdf
    File Function: English Version
    Download Restriction: no

    Bibliographic Info

    Paper provided by Indian Institute of Management Ahmedabad, Research and Publication Department in its series IIMA Working Papers with number WP2006-09-01.

    as in new window
    Length:
    Date of creation:
    Date of revision:
    Handle: RePEc:iim:iimawp:wp01977

    Contact details of provider:
    Phone: 91 79 2630 7241
    Fax: 91 79 2630 6896
    Web page: http://www.iimahd.ernet.in/publications
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. repec:att:wimass:9713 is not listed on IDEAS
    2. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
    3. Feenstra, Robert & Markusen, James R. & Rose, Andrew K, 1998. "Understanding the Home Market Effect and the Gravity Equation: The Role of Differentiating Goods," CEPR Discussion Papers 2035, C.E.P.R. Discussion Papers.
    4. Kim, MinKyoung & Cho, Guedae & Koo, Won W., 2003. "Determining Bilateral Trade Patterns Using A Dynamic Gravity Equation," Agribusiness & Applied Economics Report 23538, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
    6. Jean-François Brun & Céline Carrère & Patrick Guillaumont & Jaime de Melo, 2005. "Has Distance Died? Evidence from a Panel Gravity Model," World Bank Economic Review, World Bank Group, vol. 19(1), pages 99-120.
    7. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:wp01977. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.