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Determinants of India-ASEAN trade: an augmented gravity model analysis

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  • Mohd Kashif

Abstract

Gravity model is a widely used method to describe the determinants of foreign trade between the countries. The basic gravity model can be augmented by using other variables. The article identifies the determinants of India's trade with ASEAN countries by using the augmented gravity model so that India can formulate policies after considering all those factors which have a significant influence on India's trade with ASEAN countries. It is found from the article that GDP of both India and ASEAN countries have a significant impact on India's trade with ASEAN countries. Distance variable is also affecting India's trade with ASEAN countries but negatively. India and ASEAN both have a common experience of colonial relationships and this variable has a significant impact on India's trade with ASEAN. It is also found from the article that common border, common language and AIFTA are not influencing India's trade with ASEAN countries.

Suggested Citation

  • Mohd Kashif, 2024. "Determinants of India-ASEAN trade: an augmented gravity model analysis," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 31(2), pages 231-242.
    • Handle: RePEc:ids:ijicbm:v:31:y:2024:i:2:p:231-242
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