Pub Date : 2023-03-01DOI: 10.1177/13915614231167724
Supratik Guha
How does the price of energy affect the extent of production fragmentation in India’s manufacturing industries? The prevailing literature has engaged with production fragmentation and trade in middle products for a long time, but the relationship between energy prices and production fragmentation is less understood. This article deals with firm-level panel data of India’s manufacturing industries between 2005 and 2018 to estimate the impact of rising energy prices on the outsourcing decisions/production organization of the manufacturing firms. The article also uses a number of covariates, including wages, welfare expenses, sales, profit after tax, dividend rate, foreign exchange earnings and an interaction term between energy prices and foreign exchange earnings. The empirical results of this article indicate that larger firms tend to outsource production in part to smaller firms in order to cope with rising energy prices and keep their profitability intact. Static and dynamic panel estimates with a variety of robustness analyses support the main conjectures. JEL Classification: F18, L23, Q410, Q500
{"title":"Does Rising Energy Prices Lead to Production Fragmentation? An Example from Indian Manufacturing Industries","authors":"Supratik Guha","doi":"10.1177/13915614231167724","DOIUrl":"https://doi.org/10.1177/13915614231167724","url":null,"abstract":"How does the price of energy affect the extent of production fragmentation in India’s manufacturing industries? The prevailing literature has engaged with production fragmentation and trade in middle products for a long time, but the relationship between energy prices and production fragmentation is less understood. This article deals with firm-level panel data of India’s manufacturing industries between 2005 and 2018 to estimate the impact of rising energy prices on the outsourcing decisions/production organization of the manufacturing firms. The article also uses a number of covariates, including wages, welfare expenses, sales, profit after tax, dividend rate, foreign exchange earnings and an interaction term between energy prices and foreign exchange earnings. The empirical results of this article indicate that larger firms tend to outsource production in part to smaller firms in order to cope with rising energy prices and keep their profitability intact. Static and dynamic panel estimates with a variety of robustness analyses support the main conjectures. JEL Classification: F18, L23, Q410, Q500","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"1 1","pages":"78 - 100"},"PeriodicalIF":0.0,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88323157","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-01DOI: 10.1177/13915614231158438
J. Darshini, K. Gayithri
The key objective of this article is to empirically examine the trends and determinants of revenue diversification with respect to 14 major Indian states. The findings highlight a gradual decrease in the level of revenue diversification, which has become more visible in recent years. This indicates an erratic pattern of growth in tax and non-tax revenue sources. The panel cross-sectional–autoregressive distributed lag model test results reveal a positive contribution of economic and institutional factors, as compared to political factors, toward the process of revenue diversification. Overall, it is evident that cyclical fluctuations in the major tax revenue sources, coupled with a lessened emphasis on rationalising the structure of non-tax revenue sources, seem to have had an adverse impact on the process of revenue diversification on the part of states. JEL Classifications: H0, H1, H2, H7
{"title":"An Econometric Analysis of Revenue Diversification Among Selected Indian States","authors":"J. Darshini, K. Gayithri","doi":"10.1177/13915614231158438","DOIUrl":"https://doi.org/10.1177/13915614231158438","url":null,"abstract":"The key objective of this article is to empirically examine the trends and determinants of revenue diversification with respect to 14 major Indian states. The findings highlight a gradual decrease in the level of revenue diversification, which has become more visible in recent years. This indicates an erratic pattern of growth in tax and non-tax revenue sources. The panel cross-sectional–autoregressive distributed lag model test results reveal a positive contribution of economic and institutional factors, as compared to political factors, toward the process of revenue diversification. Overall, it is evident that cyclical fluctuations in the major tax revenue sources, coupled with a lessened emphasis on rationalising the structure of non-tax revenue sources, seem to have had an adverse impact on the process of revenue diversification on the part of states. JEL Classifications: H0, H1, H2, H7","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"113 1","pages":"41 - 63"},"PeriodicalIF":0.0,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80674939","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-01DOI: 10.1177/13915614231158729
T. Bhavan
The purpose of this study is to investigate the bilateral relationship among formal, informal and foreign direct investment (FDI) in the case of Sri Lanka during the period from 1990 to 2019. Using annual time series data, the Two Stage Least Square method is employed to investigate the relationship among the endogenous variables. The results derived from the analysis suggest that the integration between formal and informal sectors and formal sector and FDI are positive and have significant impacts on each other. However, the negative and significant impacts of the informal sector and FDI on each other further suggest that the integration between the informal sector and FDI did not give an optimistic signal to the country to contemplate that the informal sector is supporting foreign investors. At the same time, a sign that FDI discourages informal sector progression in the results has triggered the attention of further investigations on whether foreign investment agglomeration in Sri Lanka promotes informal-formal sectoral transformation at the cost of the informal sector. However, this study proposes an interest in sound policy requirements to reshape the informal sector towards the interest of foreign direct investors and informal-formal sector transformation. JEL Codes: E26, F21, J21, J46
{"title":"The Nexus Between Foreign Direct Investment, Informal and Formal Sectors in Sri Lanka","authors":"T. Bhavan","doi":"10.1177/13915614231158729","DOIUrl":"https://doi.org/10.1177/13915614231158729","url":null,"abstract":"The purpose of this study is to investigate the bilateral relationship among formal, informal and foreign direct investment (FDI) in the case of Sri Lanka during the period from 1990 to 2019. Using annual time series data, the Two Stage Least Square method is employed to investigate the relationship among the endogenous variables. The results derived from the analysis suggest that the integration between formal and informal sectors and formal sector and FDI are positive and have significant impacts on each other. However, the negative and significant impacts of the informal sector and FDI on each other further suggest that the integration between the informal sector and FDI did not give an optimistic signal to the country to contemplate that the informal sector is supporting foreign investors. At the same time, a sign that FDI discourages informal sector progression in the results has triggered the attention of further investigations on whether foreign investment agglomeration in Sri Lanka promotes informal-formal sectoral transformation at the cost of the informal sector. However, this study proposes an interest in sound policy requirements to reshape the informal sector towards the interest of foreign direct investors and informal-formal sector transformation. JEL Codes: E26, F21, J21, J46","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"25 1","pages":"7 - 19"},"PeriodicalIF":0.0,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82020649","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-03-01DOI: 10.1177/13915614231158435
N. Arora, Ishfaq Ali Ganaie
This study presents an analysis of the intra-regional performance of South Asian economies in terms of their productive efficiency during the period 1985–2019. A window data envelopment analysis (dea) based technique with bootstrapping is used to model the production frontier for seven South Asian economies to estimate their efficiency levels. The results show substantial differences in technical efficiency levels across South Asian economies and thus, the existence of vast potential to catch up with the best practices is revealed among these economies. On an average, the extent of technical inefficiency in south asia is about 46.92% per annum after adjusting for statistical bias. This is indicative of a huge gap in laggard and best practices within region. Both managerial and scale components of efficiency performance are equally responsible for observed production inefficiency in south asia. The existence of managerial inefficiency reflects failure of policy planners among affiliate countries to catch-up the best practices within South Asian region. However, the observed scale inefficiency (SIE) is because of the dominance of scale economies over diseconomies that urges need of enlarging cooperation among member nations. JEL Codes: F02, D240, C610
{"title":"How Much Technically Efficient Is The South Asian Region? An Intra-Regional Comparison Among Its Affiliates","authors":"N. Arora, Ishfaq Ali Ganaie","doi":"10.1177/13915614231158435","DOIUrl":"https://doi.org/10.1177/13915614231158435","url":null,"abstract":"This study presents an analysis of the intra-regional performance of South Asian economies in terms of their productive efficiency during the period 1985–2019. A window data envelopment analysis (dea) based technique with bootstrapping is used to model the production frontier for seven South Asian economies to estimate their efficiency levels. The results show substantial differences in technical efficiency levels across South Asian economies and thus, the existence of vast potential to catch up with the best practices is revealed among these economies. On an average, the extent of technical inefficiency in south asia is about 46.92% per annum after adjusting for statistical bias. This is indicative of a huge gap in laggard and best practices within region. Both managerial and scale components of efficiency performance are equally responsible for observed production inefficiency in south asia. The existence of managerial inefficiency reflects failure of policy planners among affiliate countries to catch-up the best practices within South Asian region. However, the observed scale inefficiency (SIE) is because of the dominance of scale economies over diseconomies that urges need of enlarging cooperation among member nations. JEL Codes: F02, D240, C610","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"16 1","pages":"20 - 40"},"PeriodicalIF":0.0,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84211788","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-20DOI: 10.1177/13915614221139937
DINABANDHU BAG
This article highlights the moral hazard problem in credence goods offered in the market as referral services. Credence goods are purchased with trust that is not observed. This examines if a penalty framework by authorities or transparency in tariff can offset moral hazard costs. A simple service unit cost model and its application to consumer expenditure data suggests that expected disutility to consumers are minimized in the penalty framework. The findings differ in the way consumers respond to transparency in tariffs, and could continue to bear moral hazard cost, as long as such units are unregistered in nature. JEL Codes: O17, E26, D24, O3
{"title":"Consumer Disutility from Assorted Referrals in Diagnostics Services","authors":"DINABANDHU BAG","doi":"10.1177/13915614221139937","DOIUrl":"https://doi.org/10.1177/13915614221139937","url":null,"abstract":"This article highlights the moral hazard problem in credence goods offered in the market as referral services. Credence goods are purchased with trust that is not observed. This examines if a penalty framework by authorities or transparency in tariff can offset moral hazard costs. A simple service unit cost model and its application to consumer expenditure data suggests that expected disutility to consumers are minimized in the penalty framework. The findings differ in the way consumers respond to transparency in tariffs, and could continue to bear moral hazard cost, as long as such units are unregistered in nature. JEL Codes: O17, E26, D24, O3","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"64 1","pages":"64 - 77"},"PeriodicalIF":0.0,"publicationDate":"2022-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78632089","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-01DOI: 10.1177/13915614221113406
Priyanka Yadav, A. Ray
The presence of private providers in the Indian healthcare sector remains one of the most debated issues. This article attempts to contribute to this debate from the angle of the ultimate goal of healthcare provision—a healthy population. We explore whether private sector presence (PSP) has improved the general health status of the people. We develop a theoretical argument to hypothesize that PSP in India would lead to better health status through the route of competition-driven quality, which in turn could lead to adverse economic consequences. We use district-level secondary data from government sources to confirm our hypotheses using robust tools of applied econometrics, correcting for serious problems of endogeneity. Constructing a district-level index of PSP, we identify distinct spatial/geographical clusters, explained by socio-economic prosperity as well as demonstration effect. We also find a robust positive association between PSP and general health outcomes, accompanied by an adverse economic consequence of rising catastrophic out-of-pocket expenditure. In terms of policy, the article concludes that rather than restricting the growth of the private sector, the government must strengthen the quality of the existing public healthcare delivery system and ensure effective monitoring and regulation. JEL Codes: 110, 111, 112, 115
{"title":"Private Sector Presence in Healthcare in India: Econometric Analysis of Patterns and Consequences","authors":"Priyanka Yadav, A. Ray","doi":"10.1177/13915614221113406","DOIUrl":"https://doi.org/10.1177/13915614221113406","url":null,"abstract":"The presence of private providers in the Indian healthcare sector remains one of the most debated issues. This article attempts to contribute to this debate from the angle of the ultimate goal of healthcare provision—a healthy population. We explore whether private sector presence (PSP) has improved the general health status of the people. We develop a theoretical argument to hypothesize that PSP in India would lead to better health status through the route of competition-driven quality, which in turn could lead to adverse economic consequences. We use district-level secondary data from government sources to confirm our hypotheses using robust tools of applied econometrics, correcting for serious problems of endogeneity. Constructing a district-level index of PSP, we identify distinct spatial/geographical clusters, explained by socio-economic prosperity as well as demonstration effect. We also find a robust positive association between PSP and general health outcomes, accompanied by an adverse economic consequence of rising catastrophic out-of-pocket expenditure. In terms of policy, the article concludes that rather than restricting the growth of the private sector, the government must strengthen the quality of the existing public healthcare delivery system and ensure effective monitoring and regulation. JEL Codes: 110, 111, 112, 115","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"210 1","pages":"171 - 200"},"PeriodicalIF":0.0,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77755388","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-11DOI: 10.1177/13915614221108564
S. H. Bidisha, Avinno Faruk, Tanveer Mahmood
In Bangladesh, despite increased participation in the labour market in recent decades, women are still lagging behind men by a significant margin, with the former being concentrated chiefly in low-paid agriculture as well as in the lower stages of the occupational ladder. With the help of the latest labour market data of 2016–2017 coupled with 2011 census data, this article attempts to examine gender segregation through sectoral and occupational lenses. Our econometric estimation of different sectors (agriculture, manufacturing, construction and service) reflects the importance of gender-centric factors such as care burden and marital status along with local employment opportunities in constraining women’s labour market engagement. Besides, decomposition analysis highlights that unfavourable returns to endowments play a crucial role in females’ concentration in relatively low-productive sectors. Sectoral and occupational segregation indices reflect a high degree of segregation between men and women. Thus, against the backdrop of the concentration of women in low-skilled jobs and a low-productive sector, this article expects to provide important policy insights for boosting female employment in relatively high-productive sectors and high-paid occupations while utilizing the structural shift in the labour market of Bangladesh. JEL Classifications: J16, J21, J71, J62, C25, O53
{"title":"How Are Women Faring in the Bangladeshi Labour Market? Evidence from Labour Force Survey Data","authors":"S. H. Bidisha, Avinno Faruk, Tanveer Mahmood","doi":"10.1177/13915614221108564","DOIUrl":"https://doi.org/10.1177/13915614221108564","url":null,"abstract":"In Bangladesh, despite increased participation in the labour market in recent decades, women are still lagging behind men by a significant margin, with the former being concentrated chiefly in low-paid agriculture as well as in the lower stages of the occupational ladder. With the help of the latest labour market data of 2016–2017 coupled with 2011 census data, this article attempts to examine gender segregation through sectoral and occupational lenses. Our econometric estimation of different sectors (agriculture, manufacturing, construction and service) reflects the importance of gender-centric factors such as care burden and marital status along with local employment opportunities in constraining women’s labour market engagement. Besides, decomposition analysis highlights that unfavourable returns to endowments play a crucial role in females’ concentration in relatively low-productive sectors. Sectoral and occupational segregation indices reflect a high degree of segregation between men and women. Thus, against the backdrop of the concentration of women in low-skilled jobs and a low-productive sector, this article expects to provide important policy insights for boosting female employment in relatively high-productive sectors and high-paid occupations while utilizing the structural shift in the labour market of Bangladesh. JEL Classifications: J16, J21, J71, J62, C25, O53","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"56 1","pages":"201 - 227"},"PeriodicalIF":0.0,"publicationDate":"2022-08-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88650519","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-07-10DOI: 10.1177/13915614221107844
Indervir Singh
The present article examines the screening and monitoring strategies used by lenders to solve the problem of imperfect information in the rural informal credit market. The study uses data from a primary survey conducted in Punjab, India. The survey focuses on informal lending between commission agents and farmers. Data were collected from 120 randomly selected commission agents from four blocks. Each of the blocks represents a different development level. The results show that commission agents invested significant time and resources for screening and monitoring the farmers. The screening and monitoring were found to be more stringent in areas that were underdeveloped and had higher default risk. Commission agents could shift a significant share of the screening cost to the borrowers, thereby increasing their self-enforcement range. The study argues that high screening cost hurts small farmers. The regression results found a significant reduction in the default rate and the unrecovered loan due to screening strategies. JEL Classification: D81, E26, Q14
{"title":"Screening and Monitoring in Informal Credit Markets: Evidence from Rural Punjab","authors":"Indervir Singh","doi":"10.1177/13915614221107844","DOIUrl":"https://doi.org/10.1177/13915614221107844","url":null,"abstract":"The present article examines the screening and monitoring strategies used by lenders to solve the problem of imperfect information in the rural informal credit market. The study uses data from a primary survey conducted in Punjab, India. The survey focuses on informal lending between commission agents and farmers. Data were collected from 120 randomly selected commission agents from four blocks. Each of the blocks represents a different development level. The results show that commission agents invested significant time and resources for screening and monitoring the farmers. The screening and monitoring were found to be more stringent in areas that were underdeveloped and had higher default risk. Commission agents could shift a significant share of the screening cost to the borrowers, thereby increasing their self-enforcement range. The study argues that high screening cost hurts small farmers. The regression results found a significant reduction in the default rate and the unrecovered loan due to screening strategies. JEL Classification: D81, E26, Q14","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"11 1","pages":"228 - 251"},"PeriodicalIF":0.0,"publicationDate":"2022-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85956682","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-03DOI: 10.1177/13915614221092824
J. Prakash, D. K. Nauriyal
Based upon a sample of 78 firms operating in Indian automotive component industry for the period 2000–2018, this research empirically examines the role of business-group affiliation, overseas investment and technology in determining exports. It applies panel Tobit and Probit model estimated with the maximum likelihood estimator. This research finds that technology imports, firm’s age, overseas investment and affiliation to a business group significantly affect industry’s export performance. However, some variables, such as past R&D intensity, firm’s size and companies with overseas investment and being part of a group have been found to have had a detrimental effect. All these results show that being outward-oriented in terms of overseas investment and being affiliated with a business group makes a significant difference concerning export success.
{"title":"Effects of Business-Group Affiliation Overseas Investment and Technology on Firm-level Export Intensity: Evidence from Indian Automotive Component Industry","authors":"J. Prakash, D. K. Nauriyal","doi":"10.1177/13915614221092824","DOIUrl":"https://doi.org/10.1177/13915614221092824","url":null,"abstract":"Based upon a sample of 78 firms operating in Indian automotive component industry for the period 2000–2018, this research empirically examines the role of business-group affiliation, overseas investment and technology in determining exports. It applies panel Tobit and Probit model estimated with the maximum likelihood estimator. This research finds that technology imports, firm’s age, overseas investment and affiliation to a business group significantly affect industry’s export performance. However, some variables, such as past R&D intensity, firm’s size and companies with overseas investment and being part of a group have been found to have had a detrimental effect. All these results show that being outward-oriented in terms of overseas investment and being affiliated with a business group makes a significant difference concerning export success.","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"1 1","pages":"145 - 170"},"PeriodicalIF":0.0,"publicationDate":"2022-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89253124","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-08DOI: 10.1177/13915614221090029
U. Kathjoo, A. Fazili
With an impasse at Doha round of negotiations, many countries started to change their course of economic liberalization from generic policies of multilateralism to regional trade agreements (RTAs). In this scenario, India plausibly lacks the presence and will of concluding such agreements with some of its major trading partners while being sceptical about the existing ones. Using structural gravity, this study has quantified the impact of country-specific globalization levels and RTAs on international trade among India and its 32 major trading partners. Unlike a plethora of studies employing the gravity model on Indian trade policy issues, we have made use of many recent advancements in gravity modelling. Our methodology robust to the use of intra-national trade data, two alternative estimators, and multiple scenarios naturally addresses the endogeneity issues that are prominent with trade policy variables like RTAs. The empirical results reveal that RTAs have a comparatively strong impact in promoting trade among sample countries. However, country-specific globalization levels measured by the KOF globalization index have a very negligible impact on promoting trade among sample countries. Furthermore, we have obtained very slight asymmetries across the impact of country-specific globalization levels on exports versus imports of mid-income countries with high-income countries. JEL Codes: F1, F14, F15, F60, F68
{"title":"Regionalism or Multilateralism: Evidence from India","authors":"U. Kathjoo, A. Fazili","doi":"10.1177/13915614221090029","DOIUrl":"https://doi.org/10.1177/13915614221090029","url":null,"abstract":"With an impasse at Doha round of negotiations, many countries started to change their course of economic liberalization from generic policies of multilateralism to regional trade agreements (RTAs). In this scenario, India plausibly lacks the presence and will of concluding such agreements with some of its major trading partners while being sceptical about the existing ones. Using structural gravity, this study has quantified the impact of country-specific globalization levels and RTAs on international trade among India and its 32 major trading partners. Unlike a plethora of studies employing the gravity model on Indian trade policy issues, we have made use of many recent advancements in gravity modelling. Our methodology robust to the use of intra-national trade data, two alternative estimators, and multiple scenarios naturally addresses the endogeneity issues that are prominent with trade policy variables like RTAs. The empirical results reveal that RTAs have a comparatively strong impact in promoting trade among sample countries. However, country-specific globalization levels measured by the KOF globalization index have a very negligible impact on promoting trade among sample countries. Furthermore, we have obtained very slight asymmetries across the impact of country-specific globalization levels on exports versus imports of mid-income countries with high-income countries. JEL Codes: F1, F14, F15, F60, F68","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":"4 1","pages":"123 - 144"},"PeriodicalIF":0.0,"publicationDate":"2022-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84175762","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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