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India's trade linkage with BRCS: An econometric study

Author

Listed:
  • Wani, Mr. Nassir Ul Haq
  • Dhami, Dr. Jasdeep Kaur
  • Sidana, Dr. Neeru

Abstract

India has put stress on enhancing trade relations with BRCS (Brazil, Russia, China and South Africa) economies, from the recent past. As a result India’s export to BRCS’s economies has been momentous. From the modeling exercise of this paper, the price and import elasticities of export flows attract a great deal of attention because of its significant implications on India’s export earnings from BRCS. Time series data ranging from 2000-2014 has been taken into consideration and to avoid non-stationarity issue on their level, DF and ADF test have been applied at level and first difference. In connection to the model results, Phillips-Hansen’s Fully Modified (FM) Method has been employed to get the estimated value of price and import elasticity of export demand for India. The results advocate that India’s export are appreciably prejudiced by BRCS economic growth and are very price competitive in the BRCS market. In other words, the depreciation of Indian rupee will be helpful for expanding India’s exports to BRCS.

Suggested Citation

  • Wani, Mr. Nassir Ul Haq & Dhami, Dr. Jasdeep Kaur & Sidana, Dr. Neeru, 2016. "India's trade linkage with BRCS: An econometric study," MPRA Paper 81949, University Library of Munich, Germany, revised 18 Mar 2017.
  • Handle: RePEc:pra:mprapa:81949
    as

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    File URL: https://mpra.ub.uni-muenchen.de/81949/1/MPRA_paper_81949.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    BRCS; DF; ADF; FM and India.;

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment

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