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New Zealand and Indian Trade in Agricultural and Manufactured Products: An Empirical Analysis

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This study examines and presents a model of manufactured and agricultural exports from New Zealand to India and the world and from India to New Zealand. Our findings show that a country’s population, GDP, GDP per capita and exchange rate are important causal factors that influence both New Zealand’s and India’s agricultural and manufactured exports. Our findings also demonstrate that New Zealand agricultural exports are highly elastic with respect to average population, showing that a one percent increase in the average population/or market size can increase New Zealand agricultural exports to India by six percent. This is contrary to the conventional wisdom about low elasticity pessimism with respect to agricultural products. These results have policy implications in the context of trade negotiations between New Zealand and India at the bilateral level and the Regional Comprehensive Economic Partnership (RCEP) in which both New Zealand and India are participating.

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  • Sayeeda Bano & Frank Scrimgeour, 2017. "New Zealand and Indian Trade in Agricultural and Manufactured Products: An Empirical Analysis," Working Papers in Economics 17/26, University of Waikato.
    • Handle: RePEc:wai:econwp:17/26
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    File URL: https://repec.its.waikato.ac.nz/wai/econwp/1726.pdf
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    6. Srinivasa Konduru & Tae Hun Kim & Mechel Paggi, 2014. "Implications of the US -South Korea Free Trade Agreement on Agricultural Exports from the US," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 2(3), pages 46-56, June.
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    More about this item

    Keywords

    international trade; agricultural exports; manufactured exports; India-New Zealand Free Trade Agreement FTA; RCEP;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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