IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v12y2024i1p2313899.html
   My bibliography  Save this article

Assessing the effect of INSTC on India’s trade with Eurasia: an application of gravity model

Author

Listed:
  • Shujaat Naeem Azmi
  • Kashif Hasan Khan
  • Halil Koch

Abstract

India’s trade with Eurasian countries has been improving steadily. India is aggressively addressing its troubles of accessibility and connectivity to the region, primarily through International North South Transport Corridor (INSTC). The present study has been undertaken to empirically examine the impact of INSTC on India’s export to its member countries. Using gravity model of international trade in a panel data framework, the findings show that both distance and if a trade partner is landlocked, effect India’s export negatively. Additionally, a positive effect of INSTC on India’s export was also discovered, elucidating the need to quickly remove the bottlenecks holding back the success of the project. Knowledge transfer and investment in infrastructure is solicited to facilitate the smooth transfer of goods, which will entail economic benefits for all members and also provide a counter narrative to China’s increasing influence in the region.Economic corridors are generally regarded as a tool for the facilitation of international trade. Therefore, an assessment of a corridor from trade perspective is essential to take corrective measures, if necessary. Our research empirically examines the International North South Transport Corridor (INSTC) for examining its effectives in stimulating exports from India to other member states. The results suggest that both distance and a trade partner being landlocked adversely effects India’s exports. The INSTC has been helpful in bridging these trade cost for India’s export to the member states. This novel work gives credence to the potential of INSTC as a source mutual benefits for the member countries. The research assumes more significance in light of the concerns surrounding supply chain disruptions for INSTC members due to Russia-Ukraine war.

Suggested Citation

  • Shujaat Naeem Azmi & Kashif Hasan Khan & Halil Koch, 2024. "Assessing the effect of INSTC on India’s trade with Eurasia: an application of gravity model," Cogent Economics & Finance, Taylor & Francis Journals, vol. 12(1), pages 2313899-231, December.
  • Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2313899
    DOI: 10.1080/23322039.2024.2313899
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2024.2313899
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/23322039.2024.2313899?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:oaefxx:v:12:y:2024:i:1:p:2313899. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    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.