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Does Regionalism Hinder Multilateralism: a Case Study of India

Author

Listed:
  • Pant, Manoj

    () (Jawaharlal Nehru University)

  • Sadhukhan, Amit

    () (Jawaharlal Nehru University)

Abstract

Today many developing countries fear that regional movements in other parts of the world will adversely impact their trade as regionalism overtakes multilateralism. The response has been that most of them are trying to get into one regional bloc or the other via regional trade arrangements (RTAs). In this paper we have investigated how India as a non-member country is affected by formation of RTAs like ASEAN, EU, NAFTA, and MERCOSUR. Controlling for non-RTA factors that influence exports, we find that India’s exports to these RTAs seem to be affected not by the formation of these RTAs per se but by demand side factors.

Suggested Citation

  • Pant, Manoj & Sadhukhan, Amit, 2009. "Does Regionalism Hinder Multilateralism: a Case Study of India," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 24, pages 222-247.
  • Handle: RePEc:ris:integr:0472
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    References listed on IDEAS

    as
    1. I-Hui Cheng & Howard J. Wall, 2005. "Controlling for heterogeneity in gravity models of trade and integration," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 49-63.
    2. Amelia Santos-Paulino & A. P. Thirlwall, 2004. "The impact of trade liberalisation on exports, imports and the balance of payments of developing countries," Economic Journal, Royal Economic Society, vol. 114(493), pages 50-72, February.
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    Cited by:

    1. Varma, Anil, 2015. "ASEAN- India free trade agreement: an assessment of merchandise exports and imports," MPRA Paper 75035, University Library of Munich, Germany, revised 10 Nov 2016.

    More about this item

    Keywords

    regional trade arrangements; regionalism; multilateralism; nonmember countries; external trade creation; trade diversion;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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