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

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Abstract

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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    1. Fukase,Emiko & Martin,William J. & Fukase,Emiko & Martin,William J., 2015. "Economic implications of a potential free trade agreement between India and the United States," Policy Research Working Paper Series 7212, The World Bank.
    2. Abidi, Asad Raza & Halepoto, Ali Hassan & Chandio, Fayyaz Raza & Shaikh, F. M, 2013. "Pak-India Trade Relationship Based on Gravity Modeling: Issues and Challenges," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 3(11), pages 301-305.
    3. Cook, David & Carrasco, Luis Roman & Paini, Dean & Fraser, Rob, 2011. "Estimating the social welfare effects of New Zealand apple imports," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), pages 1-22.
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    5. Asad Raza Abidi & Ali Hassan Halepoto & Fayyaz Raza Chandio & F. M. Shaikh, 2013. "Pak-India Trade Relationship Based on Gravity Modeling: Issues and Challenges," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 3(11), pages 301-305, November.
    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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    11. Meade, Birgit Gisela Saager & Muhammad, Andrew & Rada, Nicholas E., 2011. "Income Growth in Developing Countries Can Increase U.S. Agricultural Exports," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-8.
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    Keywords

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    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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