Does Regionalism Hinder Multilateralism: a Case Study of India
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.
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- I-Hui Cheng & Howard J. Wall, 2004.
"Controlling for heterogeneity in gravity models of trade and integration,"
1999-010, Federal Reserve Bank of St. Louis.
- 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.
- 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 F50-F72, 02.
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