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Bilateral Trade Talk between Nigeria and India: A Recipe

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  • Shehu Usman Rano, Aliyu

Abstract

This paper on bilateral trade talk between Nigeria and India: a recipe seeks to assess the impact of exogenous factors on bilateral trade flows between the two countries. Gravity model of bilateral trade flow with import and export as regressands were estimated with income, exchange rate and index of openness as regressors in the import demand and export supply models. Results show that all the three variables were strong drivers of bilateral trade flows for India, to the exclusion of Nigeria in both models. This unveils the need for Nigeria reassesses its position in the bilateral relationship.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 46682.

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Date of creation: 26 Nov 2007
Date of revision: 13 Dec 2008
Publication status: Published in Nigerian Journal of International Affairs Volume 34, Number 1. pp. 93 – 104..Vol 34(2008): pp. 93-104
Handle: RePEc:pra:mprapa:46682

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Keywords: Bilateral trade; Gravity model; income; exchange rate; index of openness;

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  8. Baier, Scott L. & Bergstrand, Jeffrey H., 2001. "The growth of world trade: tariffs, transport costs, and income similarity," Journal of International Economics, Elsevier, Elsevier, vol. 53(1), pages 1-27, February.
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  11. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, Elsevier, vol. 47(1), pages 61-95, June.
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