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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/26015
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| Title: | | Gains and losses of India-China trade cooperation: a gravity model impact analysis  |
| Authors: | | Bhattacharya, Swapan K. Bhattacharyay, Biswa N. |
| Issue Date: | | 2007 |
| Series/Report no.: | | CESifo working paper 1970 |
| Abstract: | | As revealed by the trade intensity indices, India and the Peoples Republic of China have significant bilateral trade potential, which remains unexplored until now. These countries are presently negotiating for free trade arrangements among them based on their complementarities. This paper makes an attempt to estimate the likely benefits in terms of gains or losses in imports of both India and China due to different preferential trading arrangements and free trade arrangements using the gravity model. Empirical results show that in the short run Indias potential gain is relatively less compared to China because of its high tariffs but in the long run, Indias gains are higher than China once its tariff levels are brought at par with them. Free trade arrangement is a win-win situation for both countries and is consistent with their growing dominance in the international trade. |
| JEL: | | F02 F04 F13 F14 F15 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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