IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v14y2024i12p932-946id5241.html
   My bibliography  Save this article

India's trade corridors: A shopping time model analysis for IMEEC and INSTC

Author

Listed:
  • Iman Bastanifar
  • Kashif Hasan Khan
  • Huda Shah
  • Halil Koch

Abstract

This study evaluates India's trade potential and financial efficiency within two key corridors: the India-Middle East-Europe Economic Corridor (IMEEC) and the International North-South Transport Corridor (INSTC). This study concentrates on maximizing transaction time savings through the holding of additional real money balances, taking into account the influence of distance. An adjusted shopping time model, incorporating distances and service areas, is used. Dynamic programming calculates optimal transaction times for India's trade with members of both IMEEC and INSTC. The opportunity costs of holding money (OC) are introduced as a welfare criterion to compare the trade benefits. The study finds that distance significantly influences the optimal quantity of money for trade. India benefits more from trade with IMEEC members like the UAE, Italy, and France, and INSTC members such as Russia and Kazakhstan. IMEEC offers greater trade payoffs for India compared to INSTC, making it a more strategic option for enhancing India's global trade position. The research provides valuable insights for policymakers in optimizing trade routes and financial strategies, leveraging India’s involvement in both IMEEC and INSTC for economic gain.

Suggested Citation

  • Iman Bastanifar & Kashif Hasan Khan & Huda Shah & Halil Koch, 2024. "India's trade corridors: A shopping time model analysis for IMEEC and INSTC," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 14(12), pages 932-946.
    • Handle: RePEc:asi:aeafrj:v:14:y:2024:i:12:p:932-946:id:5241
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/5241/8114
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:14:y:2024:i:12:p:932-946:id:5241. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.