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Determinants of India’s Manufactured Exports to South and North: A Gravity Model Analysis

Author

Listed:
  • Suresh K G

    (IBS Business School, Dehradun, India.)

  • Neeraj Aswal

    (Faculty of Science and Technology, ICFAI University, Dehradun, India.)

Abstract

We have analysed the determinants of India’s manufactured exports to its southern (developing countries) and northern (developed countries) markets. We employed an augmented gravity model to examine the determinants of India’s exports. The analysis shows that India’s exports to south and north is explained by the new trade theory variables like total GDP, GDP similarity and the difference in percapita income as an indicator of Heckschor-Ohlin theory of trade. However the distance is more negatively affecting India’s exports to north than the southern market as the proximity to southern market is helping India’s exports to grow in south.

Suggested Citation

  • Suresh K G & Neeraj Aswal, 2014. "Determinants of India’s Manufactured Exports to South and North: A Gravity Model Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 4(1), pages 144-151.
  • Handle: RePEc:eco:journ1:2014-01-14
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    References listed on IDEAS

    as
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    2. Przemyslaw Kowalski & Ben Shepherd, 2006. "South-South Trade In Goods," OECD Trade Policy Papers 40, OECD Publishing.
    3. Egger, Peter, 2000. "A note on the proper econometric specification of the gravity equation," Economics Letters, Elsevier, vol. 66(1), pages 25-31, January.
    4. Kabir, Mahfuz & Salim, Ruhul, 2010. "Can Gravity Model Explain BIMSTEC’s Trade?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 144-166.
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    7. Marie Stack & Eric Pentecost, 2011. "Regional integration and trade: A panel cointegration approach to estimating the gravity model," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(1), pages 53-65.
    8. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2003. "A generalized design for bilateral trade flow models," Economics Letters, Elsevier, vol. 80(3), pages 391-397, September.
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    Citations

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    Cited by:

    1. Mabeta, Joshua, 2015. "Determinants of Non-Traditional Agricultural Exports Growth in Zambia: A Case of Cotton and Tobacco," Research Theses 243450, Collaborative Masters Program in Agricultural and Applied Economics.

    More about this item

    Keywords

    South-South trade; South-North trade; Gravity model;

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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