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Evaluating the Trade, Revenue and Welfare Implication of Plantation Crops under ASEAN–India FTA

Author

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  • Subhash Jagdambe
  • Shaikh Mohd Mouzam

Abstract

This article examines the impact of ASEAN–India Free Trade Agreement on India’s special products categories, namely, coffee, tea and pepper based on partial equilibrium model. The Software for Market Analysis and Restrictive Trade (SMART) model has been used to estimate the trade creation (TC) and trade diversion (TD) effect, revenue effect and welfare effect for the above-mentioned commodities. The results from the SMART simulation analysis indicate that the increase in trade for both the scenarios is mainly driven by TC rather than TD. Further, the study also assesses how the total trade effect is distributed across the major ASEAN countries for each commodity and found that Indonesia and Vietnam are the biggest gainers in terms of TC effect in both the scenarios. JEL Classification: F13, F15, Q1

Suggested Citation

  • Subhash Jagdambe & Shaikh Mohd Mouzam, 2019. "Evaluating the Trade, Revenue and Welfare Implication of Plantation Crops under ASEAN–India FTA," Journal of Asian Economic Integration, , vol. 1(2), pages 224-241, September.
    • Handle: RePEc:sae:jfasei:v:1:y:2019:i:2:p:224-241
    DOI: 10.1177/2631684619882864
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    References listed on IDEAS

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    3. Jean-Christophe Maur & Jean-Pierre Chauffour, 2011. "Preferential Trade Agreement Policies for Development : A Handbook," World Bank Publications - Books, The World Bank Group, number 2329.
    4. Gordhan K Saini & C. Veeramani, 2010. "Impact of ASEAN-India FTA on India’s Plantation Commodities: A Simulation Analysis," Working Papers id:2477, eSocialSciences.
    5. Busse, Matthias & Shams, Rasul, 2005. "Trade Effects of the East African Community," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(01), pages 1-22.
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    7. Busse, Matthias & Shams, Rasul, 2005. "Trade Effects of the East African Community: The Model of Verdoorn: Technical Annex," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(01), pages 1-3.
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    Cited by:

    1. Saurabh Kumar Bharti & Syeedun Nisa, 2023. "Evaluation of the Impact of Regional Trade Agreements on Indian Exports," Journal of Asian Economic Integration, , vol. 5(1), pages 51-63, April.
    2. Gabriel Mhonyera & Daniel Francois Meyer, 2023. "The Impact of AfCFTA on Welfare and Trade: Nigeria and South Africa in Light of Core Export Competences," Sustainability, MDPI, vol. 15(6), pages 1-16, March.

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    More about this item

    Keywords

    Trade creation; trade diversion; ASEAN; India; agriculture;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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