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Estimating the Impact of the India–ASEAN Free Trade Agreement on Indian Industries

Author

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  • Ranajoy Bhattacharyya
  • Avijit Mandal

Abstract

This study shows that intermediate goods will be more affected (both adversely and favourably) than final goods due to ASEAN–India FTA. Other interesting conclusions include tariffs do not matter at all for a major part of the industries and for them the agreement has no significance. In fact, some of the most debated commodities fall in this category. For them though tariff rates have steadily increased over time, so has imports imparting a wrong sign to the tariff elasticity which means that reasons other than tariffs determine their imports and there is no point in putting them in the sensitive or exclusion list.

Suggested Citation

  • Ranajoy Bhattacharyya & Avijit Mandal, 2014. "Estimating the Impact of the India–ASEAN Free Trade Agreement on Indian Industries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(1), pages 93-114, March.
    • Handle: RePEc:sae:soueco:v:15:y:2014:i:1:p:93-114
    DOI: 10.1177/1391561414527050
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    References listed on IDEAS

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    1. Yumiko Okamoto, 2006. "China and India : challenges and opportunities for ASEAN from Japanese perspectives," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 43(1), pages 73-96, June.
    2. Mukul Asher, 2004. "Book Reviews : Research and Information System for the Non-aligned and Other Developing Countries (RIS), India-ASEAN Partnership in an Era of Globalization, New Delhi, pp. 267," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 5(1), pages 165-167, March.
    3. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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    Citations

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    Cited by:

    1. Saba GULNAZ & Hemlata MANGLANI, 2022. "Does gravity work in the context of India and ASEAN bilateral trade? An application of the FGLS method," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(630), S), pages 143-160, Spring.
    2. Bhattacharyya, Ranajoy & Mandal, Avijit, 2016. "India–ASEAN Free Trade Agreement: An ex post evaluation," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 340-352.
    3. Loitongbam Bishwanjit Singh, 2021. "Impact of India-ASEAN Free Trade Agreement: An Assessment from the Trade Creation and Trade Diversion Effects," Foreign Trade Review, , vol. 56(4), pages 400-414, November.
    4. Krishna P. Timsina & Richard J. Culas, 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 889-919, July.
    5. Sayeeda Bano & Nawal K. Paswan, 2016. "New Zealand–India Trade Relations and Growth Potential: An Empirical Analysis," India Quarterly: A Journal of International Affairs, , vol. 72(1), pages 50-74, March.
    6. Renaud, Karine M. & Manley, Ross & Nassar, Nedal T., 2023. "A comparison of copper use in China and India as a proxy for their economic development," Resources Policy, Elsevier, vol. 80(C).

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    More about this item

    Keywords

    India ASEAN Free Trade Agreement; micro level impact; tariff elasticity;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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