Will free trade agreement between India and China reduce India’s trade deficit?

نویسندگان

چکیده

Abstract Trade between India and China has been rising exponentially with a widening trade deficit for India, which raised alarm by businesses, some Indian parliamentarians have started accusing of unfair practices. Nevertheless, both countries intend to negotiate free arrangements them based on complementarity. This study examines how much reduction in due different preferential trading is feasible under hypothetical full export potential scenarios using stochastic frontier gravity model. The empirical analysis shows that India’s gain high when the influence existing ‘behind border’ constraints eliminated.

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ژورنال

عنوان ژورنال: Journal of social and economic development

سال: 2022

ISSN: ['2199-6873', '0972-5792']

DOI: https://doi.org/10.1007/s40847-022-00203-2