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The Determinants of India’s Imports: A Gravity Model Approach

Author

Listed:
  • Wani, Mr. Nassir Ul Haq
  • Dhami, Dr. Jasdeep Kaur
  • Rehman, Dr. Afzal Ur

Abstract

In order to understand the India’s import trade with its partners, this paper applies the generalized gravity model to analyse the import structure by employing the panel data estimation technique. The results portray that India’s imports are determined by the inflation rates, per capita income differentials and the overall openness of the countries involved in trade. It has been also found out that imports are influenced to a great degree by the common border, as the case is between India, China and Bangladesh. Furthermore, the country precise effects describe that the sway of neighbouring countries is more than that of distant countries on India’s imports.

Suggested Citation

  • Wani, Mr. Nassir Ul Haq & Dhami, Dr. Jasdeep Kaur & Rehman, Dr. Afzal Ur, 2016. "The Determinants of India’s Imports: A Gravity Model Approach," MPRA Paper 74700, University Library of Munich, Germany, revised 12 Oct 2016.
    • Handle: RePEc:pra:mprapa:74700
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    References listed on IDEAS

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    1. Frankel, Jeffrey A. & Wei, Shang-Jin, 1993. "Emerging Currency Blocs," Center for International and Development Economics Research (CIDER) Working Papers 233209, University of California-Berkeley, Department of Economics.
    2. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-153, February.
    3. Jaya Krishnakumar, 2002. "A SUR-EC-AR System Gravity Model of Trade," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B4-4, International Conferences on Panel Data.
    4. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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    Cited by:

    1. Mwangi, Esther N., 2021. "Determinants of Agricultural Imports in Sub-Saharan Africa: A Gravity Model," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.
    2. wani, Nassir ul & dhami, Jasdeep kaur, 2016. "Trade Potential of India against BRCS Economies: An empirical analysis based on Gravity Model," MPRA Paper 91785, University Library of Munich, Germany, revised 10 Feb 2017.

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    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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