IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2014-01-14.html
   My bibliography  Save this article

Determinants of India's Manufactured Exports to South and North: A Gravity Model Analysis

Author

Listed:
  • Suresh K G

    (IBS Business School, Dehradun, India.)

  • Neeraj Aswal

    (Faculty of Science and Technology, ICFAI University, Dehradun, India.)

Abstract

We have analysed the determinants of India's manufactured exports to its southern (developing countries) and northern (developed countries) markets. We employed an augmented gravity model to examine the determinants of India's exports. The analysis shows that India's exports to south and north is explained by the new trade theory variables like total GDP, GDP similarity and the difference in percapita income as an indicator of Heckschor-Ohlin theory of trade. However the distance is more negatively affecting India's exports to north than the southern market as the proximity to southern market is helping India's exports to grow in south.

Suggested Citation

  • Suresh K G & Neeraj Aswal, 2014. "Determinants of India's Manufactured Exports to South and North: A Gravity Model Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 4(1), pages 144-151.
    • Handle: RePEc:eco:journ1:2014-01-14
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/download/664/pdf
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijefi/article/view/664/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lewis, W Arthur, 1980. "The Slowing Down of the Engine of Growth," American Economic Review, American Economic Association, vol. 70(4), pages 555-564, September.
    2. Kabir, Mahfuz & Salim, Ruhul, 2010. "Can Gravity Model Explain BIMSTEC’s Trade?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 144-166.
    3. Scott L. Baier & Jeffrey H. Bergstrand & Erika Vidal, 2007. "Free Trade Agreements In the Americas: Are the Trade Effects Larger than Anticipated?," The World Economy, Wiley Blackwell, vol. 30(9), pages 1347-1377, September.
    4. Marie Stack & Eric Pentecost, 2011. "Regional integration and trade: A panel cointegration approach to estimating the gravity model," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(1), pages 53-65.
    5. Lakshmi Puri, 2007. "IBSA: An Emerging Trinity in the New Geography of International Trade," UNCTAD Blue Series Papers 35, United Nations Conference on Trade and Development.
    6. Marie M. Stack, 2009. "Regional Integration and Trade: Controlling for Varying Degrees of Heterogeneity in the Gravity Model," The World Economy, Wiley Blackwell, vol. 32(5), pages 772-789, May.
    7. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2003. "A generalized design for bilateral trade flow models," Economics Letters, Elsevier, vol. 80(3), pages 391-397, September.
    8. Athukorala, Prema-Chandra, 2011. "South-South Trade: An Asian Perspective," ADB Economics Working Paper Series 265, Asian Development Bank.
    9. Fritz Breuss & Peter Egger, 1999. "How Reliable Are Estimations of East-West Trade Potentials Based on Cross-Section Gravity Analyses?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 26(2), pages 81-94, June.
    10. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
    11. Przemyslaw Kowalski & Ben Shepherd, 2006. "South-South Trade In Goods," OECD Trade Policy Papers 40, OECD Publishing.
    12. Egger, Peter, 2000. "A note on the proper econometric specification of the gravity equation," Economics Letters, Elsevier, vol. 66(1), pages 25-31, January.
    13. Nelson C. Mark & Donggyu Sul, 2003. "Cointegration Vector Estimation by Panel DOLS and Long‐run Money Demand," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(5), pages 655-680, December.
    14. Maurice J. G. Bun & Franc J. G. M. Klaassen, 2007. "The Euro Effect on Trade is not as Large as Commonly Thought," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(4), pages 473-496, August.
    15. Colin Kirkpatrick & Matsuo Watanabe, 2005. "Regional Trade In Sub‐Saharan Africa: An Analysis Of East African Trade Cooperation, 1970–2001," Manchester School, University of Manchester, vol. 73(2), pages 141-164, March.
    16. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Degirmenci N. & Yakıcı Ayan T., 2019. "Gravity Approach for Determinants of Exports," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 102-111.
    2. Mabeta, Joshua, 2015. "Determinants of Non-Traditional Agricultural Exports Growth in Zambia: A Case of Cotton and Tobacco," Research Theses 243450, Collaborative Masters Program in Agricultural and Applied Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. P. Montalbano & S. Nenci, 2014. "Assessing the trade impact of the European Neighbourhood Policy on the EU-MED Free Trade Area," Applied Economics, Taylor & Francis Journals, vol. 46(7), pages 730-740, March.
    2. Cardamone, Paola, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(4), pages 421-473.
    3. Farha Fatema & Mohammad Monirul Islam, 2020. "Driving Forces of Marine Fisheries and Seafood Export of Bangladesh: Augmented Gravity Model Approach," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(2), pages 106-122, June.
    4. Anselm Mattes & Philipp Meinen & Ferdinand Pavel, 2012. "Goods Follow Bytes: The Impact of ICT on EU Trade," Discussion Papers of DIW Berlin 1182, DIW Berlin, German Institute for Economic Research.
    5. Ghulam Shabbir & Amjad Naveed & Muhammad Ali Khan & Shabib Haider Syed, 2022. "Does Peace Promote Bilateral Trade Flows? An Economic Analysis of Panel Data in Asian Perspective," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(1), pages 143-158, March.
    6. Peter Egger, 2000. "Teilprojekt 4: Bilaterale Wirtschaftsbeziehungen zwischen der EU und ausgewählten mittel- und osteuropäischen Ländern (MOEL): Entwicklungen der letzten Jahre und Versuch einer Prognose," WIFO Studies, WIFO, number 19262, August.
    7. NOWAK-LEHMANN D., Felicitas & HERZER, Dierk & VOLLMER, Sebastian, 2007. "The Free Trade Agreement Between Chile And The Eu: Its Potential Impact On Chile’S Export Industry," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
    8. repec:got:cegedp:43 is not listed on IDEAS
    9. Muhammad Ullah & Kazuo Inaba, 2012. "Impact of RTA and PTA on Bangladesh’s Export: Application of a Gravity Model," Journal of Industry, Competition and Trade, Springer, vol. 12(4), pages 445-460, December.
    10. Sushil Kumar & Shahid Ahmed, 2015. "Gravity Model by Panel Data Approach," Foreign Trade Review, , vol. 50(4), pages 233-249, November.
    11. Byambasuren, Tsenguunjav & Gochoo, Munkh-Erdene, 2015. "Optimizing the Structure of Mongolian Foreign Trade and the Alternative Policy of Successful Transition," MPRA Paper 61803, University Library of Munich, Germany.
    12. 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.
    13. Estrella Gómez-Herrera, 2013. "Comparing alternative methods to estimate gravity models of bilateral trade," Empirical Economics, Springer, vol. 44(3), pages 1087-1111, June.
    14. Simone Juhasz Silva & Douglas Nelson, 2012. "Does Aid Cause Trade? Evidence from an Asymmetric Gravity Model," The World Economy, Wiley Blackwell, vol. 35(5), pages 545-577, May.
    15. Martínez-Zarzoso, Inmaculada & Felicitas, Nowak-Lehmann D. & Horsewood, Nicholas, 2009. "Are regional trading agreements beneficial?: Static and dynamic panel gravity models," The North American Journal of Economics and Finance, Elsevier, vol. 20(1), pages 46-65, March.
    16. Ignaciuk, Adriana M. & Hilderink, Henk & Peterson, Sonja, 2008. "Integrating demography into a regional CGE model," Conference papers 331693, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Nowak-Lehmann D., Felicitas & Herzer, Dierk & Martínez-Zarzoso, Inmaculada & Vollmer, Sebastian, 2005. "Turkey and the Ankara Treaty of 1963: What can Trade Integration Do for Turkish Exports," University of Göttingen Working Papers in Economics 43, University of Goettingen, Department of Economics.
    18. Martinez-Zarzoso, Inmaculada & Nowak-Lehmann, Felicitas, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Universidad del CEMA, vol. 6(2), pages 1-26, November.
    19. A Salim, Ruhu & Mahfuz Kabir, Mohammad, 2011. "Does More Trade Potential Remain in Arab States of the Gulf ?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 26, pages 217-243.
    20. Afolabi Luqman.O & Nor Aznin Abu Bakar & Mukhriz Izraf Azman Aziz, 2015. "Regionalism and ECOWAS Trade Performance: A Gravity Model Approach," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 29(2), pages 59-71.
    21. Norehan Abdullah & Hussin Abdullah & Hadi M. Othman Abuhriba, 2014. "The Determinants of Trade and Trade Direction of Arab Maghreb Union (AMU)," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 2(2), pages 46-62.

    More about this item

    Keywords

    South-South trade; South-North trade; Gravity model;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    Statistics

    Access and download statistics

    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:eco:journ1:2014-01-14. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    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.