IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0948.html
   My bibliography  Save this article

India-MERCOSUR Preferential Trade Agreement: An Ex-Post Evaluation under Modern Gravity Framework

Author

Listed:
  • Mamta, Kumari

    (Alliance University, Bengaluru, Karnataka, India)

Abstract

Against the backdrop of expanding the tariff concession list of 450 products to 1500-2000 under India - Southern Common Market Preferential Trade Agreement (India-MERCOSUR PTA), the study analyses the effects of the India-MERCOSUR PTA on the trade flows of member states. The study employs structural gravity model framework to estimate total bilateral, unilateral, and heterogenous trade effects of this PTA. The results indicate that bilateral trade between India and MERCOSUR countries have increased by 63% at the expense of trade diversion from domestic sales. The study also provides evidence that PTA significantly increased India’s trade with non-MERCOSUR countries by 90%. In addition, the hypothesis of heterogeneity effects of PTA across each of its member countries and the direction of trade is confirmed by the estimates. Such empirical evidence of large average impacts on goods trade gives significant boost to the ongoing negotiations for further deepening the existing trade agreement.

Suggested Citation

  • Mamta, Kumari, 2025. "India-MERCOSUR Preferential Trade Agreement: An Ex-Post Evaluation under Modern Gravity Framework," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 40(2), pages 367-390.
    • Handle: RePEc:ris:integr:0948
    as

    Download full text from publisher

    File URL: https://www.e-jei.org
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Gravity Model; Unilateral Effects; Trade Integration; India; MERCOSUR; Panel Data;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0948. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.