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India’s Trade and Gravity Model: A Static and Dynamic Panel Data

Author

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  • Tripathi, Sabyasachi
  • Leitão, Nuno Carlos

Abstract

This paper examines the India’s trade flows using a gravity model for the period 1998-2012. We selected the following major trade partners: China PRP, United Arab Emirates, United States, Saudi Arab, Switzerland, Singapore, Germany, Hong Kong, Indonesia, Iraq, Japan, Belgium, Kuwait, Korea RP, Nigeria, Australia, United Kingdom, Iran, South Africa, and Qatar. In this research we apply a static and dynamic panel. We find evidence that political globalization and cultural proximity have a positive influence in bilateral trade. We also introduce economic size and common border these proxies confirming a positive impact of bilateral trade. These results show that the gravity model can explain the pattern of bloc’s trade.

Suggested Citation

  • Tripathi, Sabyasachi & Leitão, Nuno Carlos, 2013. "India’s Trade and Gravity Model: A Static and Dynamic Panel Data," MPRA Paper 45502, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:45502
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    File URL: https://mpra.ub.uni-muenchen.de/45502/1/MPRA_paper_45502.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Natalia Drzewoszewska, 2014. "Searching for the Appropriate Measure of Multilateral Trade-Resistance Terms in the Gravity Model of Bilateral Trade Flows," Dynamic Econometric Models, Uniwersytet Mikolaja Kopernika, vol. 14, pages 29-49.
    2. Vdovychenko, Artem & Zubrytskyi, Artur, 2016. "Effects of fiscal consolidation on exports in Ukraine," MPRA Paper 70722, University Library of Munich, Germany, revised Feb 2016.
    3. Veena Renjini K K, 2017. "Trade Potential of the Fishery Sector: Evidence from India," Working Papers id:12091, eSocialSciences.

    More about this item

    Keywords

    Trade; Panel Data; Gravity model; India.;

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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