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Impact of India-ASEAN Free Trade Agreement: A Cross-Country Analysis using Applied General Equilibrium Modelling

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  • Biswajit Nag
  • Chandrima Sikdar

Abstract

The study attempted to analyse the long-term effects of the FTA on India. It is argued that after full trade liberalization, India’s allocative efficiency will increase, but the terms of trade effect will worsen continuously and remain negative. India will be able to arrest the worsening in terms of trade once the gain in allocative efficiency is used to improve productivity in the export-oriented sectors as well as achieve economies of scale.

Suggested Citation

  • Biswajit Nag & Chandrima Sikdar, 2015. "Impact of India-ASEAN Free Trade Agreement: A Cross-Country Analysis using Applied General Equilibrium Modelling," Working Papers id:6624, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:6624
    Note: Institutional Papers
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    References listed on IDEAS

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    1. Suparna Karmakar, 2005. "India-ASEAN Cooperation in Services: An Overview," Indian Council for Research on International Economic Relations, New Delhi Working Papers 176, Indian Council for Research on International Economic Relations, New Delhi, India.
    2. Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644, Elsevier.
    3. Suparna Karmakar, 2005. "India-ASEAN Cooperation in Services: An Overview," Working Papers id:299, eSocialSciences.
    4. Francois, Joseph F., 1998. "Scale Economies And Imperfect Competition In The Gtap Model," Technical Papers 28718, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Elbehri, Aziz & Hertel, Thomas, 2006. "A Comparative Analysis of the EU-Morocco FTA vs. Multilateral Liberalization," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 496-525.
    6. Huay-Huay Lee & Hock-Ann Lee & Venus Khim-Sen Liew, 2007. "India-ASEAN-5 Economic Integration: Impact of Liberalization," The IUP Journal of Applied Economics, IUP Publications, vol. 0(6), pages 7-20, November.
    7. 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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. 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.
    2. Poornima Varma & Anjali Ramakrishnan, 2014. "An Analysis of the Structure and the Determinants of Intra-industry Trade in Agri-food Products: Case of India and Selected FTAs," Millennial Asia, , vol. 5(2), pages 179-196, October.
    3. Bitan Mondal, Bitan Mondal & Smita Sirohi, Smita Sirohi & Vishal Thorat, Vishal Thorat, 2012. "Impact of ASEAN-India Free Trade Agreement on Indian Dairy Trade: A Quantitative Approach," MPRA Paper 40790, University Library of Munich, Germany.
    4. Devasmita Jena & Swati Saini, 2020. "Impact of Trade with ASEAN on India’s Employment in Industrial Sector," Working Papers 2020-190, Madras School of Economics,Chennai,India.
    5. P.Govindan, 2020. "A Study On Growth And Impacts Of India’S Foreign Trade -An Engine For Entrepreneurship And Economic Development," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 20(2), pages 161-174.

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    More about this item

    Keywords

    FTA; India; ASEAN; allocative efficiency; trade; productivity; export; import; social sectors; economies; scale; equilibrium.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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