IDEAS home Printed from https://ideas.repec.org/a/ijr/journl/v3y2015i7p327-342.html
   My bibliography  Save this article

India- Saudi Arabia Bilateral Trade Relations: Recent Experiences and Future Opportunities

Author

Listed:
  • Imran Alam

    (Department of Economics, Jamia Millia Islamia, (A Central University) New Delhi, India)

  • Shahid Ahmed

    (Department of Economics, Jamia Millia Islamia, (A Central University) New Delhi, India)

Abstract

Purpose: In recent years India-Saudi Arabia bilateral trade has grown enormously. In 2013, Saudi Arabia ranked four amongst the leading trading partner of India and on the flip side; India was the seventh largest trading partner of Saudi Arabia. This paper explores the major trends of bilateral trade between the two nations and tries to scrutinize the features and challenges that arose out of this trade intensity and resulted in a mutual benefit of both state during the period of 2001 to 2013. Methodology: To achieve these objectives, trade intensity index and revealed comparative advantage at aggregate and disaggregate level has been calculated. The result analysis highlights that the structures of export in India and Saudi Arabia differs significantly. Findings: This indicates a positive point that both the nations are not in a competition as the various areas of merchandise trade is different in India and Saudi Arabia. So, this specialization, in bilateral trade liberalization, undoubtedly acts as a precursor towards an enhanced potential of economic growth for both countries. Recommendations: Conclusively, the analysis highlights that there has been acceleration in the bilateral trade and this infers that one can expect a positive effect on economic trade relations between the participating nations.

Suggested Citation

  • Imran Alam & Shahid Ahmed, 2015. "India- Saudi Arabia Bilateral Trade Relations: Recent Experiences and Future Opportunities," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(7), pages 327-342, July.
    • Handle: RePEc:ijr:journl:v:3:y:2015:i:7:p:327-342
    as

    Download full text from publisher

    File URL: http://tesdo.org/shared/upload/pdf/papers/IJEER,%203_7_,%20327-342%20.pdf
    Download Restriction: no
    File URL: http://tesdo.org/journal_detail.php?paper_id=175&expand_year=2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joachim Wagner, 2016. "Exports and Productivity: A Survey of the Evidence from Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 1, pages 3-41, World Scientific Publishing Co. Pte. Ltd..
    2. Lee, Jong-Wha, 1995. "Capital goods imports and long-run growth," Journal of Development Economics, Elsevier, vol. 48(1), pages 91-110, October.
    3. Sun, Peng & Heshmati, Almas, 2010. "International Trade and its Effects on Economic Growth in China," IZA Discussion Papers 5151, Institute of Labor Economics (IZA).
    4. Kavoussi, Rostam M., 1984. "Export expansion and economic growth : Further empirical evidence," Journal of Development Economics, Elsevier, vol. 14(1), pages 241-250.
    5. Kojima, Kiyoshi, 1964. "The Pattern of International Trade Among Advanced Countries," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 5(1), pages 16-36, June.
    6. Bano, Sayeeda & Takahashi, Yoshiaki & Scrimgeour, Frank, 2013. "ASEAN-New Zealand Trade Relations and Trade Potential: Evidence and Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 28, pages 144-182.
    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. Imran ALAM & Nitesh THAKUR & Abdul Basir Omar Shah KHAIL, 2023. "Macro Analysis of Foreign Exchange Markets of Afghanistan: Retrospect and Prospect," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 56-68.
    2. Imran Alam & Shahid Ahmed, 2017. "Prospects of India–GCC Trade Relations," Foreign Trade Review, , vol. 52(2), pages 118-129, May.
    3. Saba Ismail & Shahid Ahmed, 2019. "Economic Effects of Tariff Liberalization of Prospective India-GCC FTA: A Computable General Equilibrium Analysis," Foreign Trade Review, , vol. 54(3), pages 224-252, August.

    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. Gent Jusufi & Lura Rexhepi Mahmutaj & Gentina Jusufi & Nora Jusufi, 2015. "Kosovo’s International Trade: Balance of Trade," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 1, September.
    2. Tarlok Singh, 2010. "Does International Trade Cause Economic Growth? A Survey," The World Economy, Wiley Blackwell, vol. 33(11), pages 1517-1564, November.
    3. Pablo Blanchard & Adriana Peluffo & Dayna Zaclicever, 2019. "Revisando el rol de los productos intermedios importados en la productividad: un análisis a nivel de empresa para Uruguay," Documentos de Trabajo (working papers) 19-03, Instituto de Economía - IECON.
    4. Stefanescu, Razvan & Dumitriu, Ramona, 2014. "Investigation on the relationship between Romanian foreign trade and industrial production," MPRA Paper 62547, University Library of Munich, Germany.
    5. Osadume Richard & Blessing Uzoma, C., 2020. "Maritime Trade and Economic Development: A Granger Causality and Bound Test Approach," LOGI – Scientific Journal on Transport and Logistics, Sciendo, vol. 11(2), pages 23-32, November.
    6. Charles E. Bryant & Rajshekhar G. Javalgi, 2016. "Global Economic Integration in Developing Countries: The Role of Corruption and Human Capital Investment," Journal of Business Ethics, Springer, vol. 136(3), pages 437-450, July.
    7. R. Rijesh, 2015. "Technology Import and Manufacturing Productivity in India: Firm Level Analysis," Journal of Industry, Competition and Trade, Springer, vol. 15(4), pages 411-434, December.
    8. Deimante Blavasciunaite & Lina Garsviene & Kristina Matuzeviciute, 2020. "Trade Balance Effects on Economic Growth: Evidence from European Union Countries," Economies, MDPI, vol. 8(3), pages 1-15, July.
    9. Sadhna Garg, 2016. "India’s Trade Potential and Prospects with Sri Lanka: 1991 to 2015," South Asian Survey, , vol. 23(2), pages 93-118, September.
    10. Bender, Dieter & Löwenstein, Wilhelm, 2005. "Two-gap models: Post-keynesian death and neoclassical rebirth," IEE Working Papers 180, Ruhr University Bochum, Institute of Development Research and Development Policy (IEE).
    11. Jai Prakash Yadav & Bimlesh Singh, 2024. "India’s Export Potential to Southern African Customs Union," Insight on Africa, , vol. 16(1), pages 22-45, January.
    12. László Kónya & Jai Pal Singh, 2006. "Exports, Imports and Economic Growth in India," Working Papers 2006.06, School of Economics, La Trobe University.
    13. Biswajit Maitra, 2020. "Exploring Import-led Growth in India: Evidence from the Post-reform Period," South Asian Journal of Macroeconomics and Public Finance, , vol. 9(1), pages 87-113, June.
    14. Keun Lee & Sanika Sulochani Ramanayake, 2018. "Adding-Up Problem and Wage–Productivity Gap in Exports of Developing Countries: A Source of the Middle-Income Trap," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(5), pages 769-788, December.
    15. Mahadevan, Renuka & Suardi, Sandy, 2011. "The effects of uncertainty dynamics on exports, imports and productivity growth," Journal of Asian Economics, Elsevier, vol. 22(2), pages 174-188, April.
    16. Imran Alam & Shahid Ahmed, 2017. "Prospects of India–GCC Trade Relations," Foreign Trade Review, , vol. 52(2), pages 118-129, May.
    17. Patricia Kotnik & Eva Hagsten, 2018. "ICT use as a determinant of export activity in manufacturing and service firms: Multi-country evidence," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 103-128.
    18. Geoffrey Barrows & Hélène Ollivier & Ariell Reshef, 2023. "Production Function Estimation with Multi-Destination Firms," CESifo Working Paper Series 10716, CESifo.
    19. Ricardo A. Lopez, 2007. "Exports and Productivity – Comparable Evidence for 14 Countries," CAEPR Working Papers 2007-028, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    20. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.

    More about this item

    Keywords

    Bilateral Trade; Trade Intensity Index; Revealed Comparative Advantage;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    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:ijr:journl:v:3:y:2015:i:7:p:327-342. 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: Dr. Muhammad Shahbaz (PhD Applied Economics) (email available below). General contact details of provider: https://edirc.repec.org/data/tesdopk.html .

    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.