Yejun Choi, Ram N. Acharya, Stephen Devadoss, Madhav Regmi
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Effects of tariff and non‐tariff barriers on India‐US agricultural trade
India has a growing demand for high‐value agricultural products due to rising incomes, urbanization, and consumer preferences. The United States is currently India's fifth‐largest supplier of agricultural products. However, trade barriers restrict bilateral trade between these two nations, and both countries are evaluating the prospects for lowering trade restrictions and enhancing bilateral trade. We employ a gravity model to analyze the effects of trade policies on India‐US bilateral trade and the potential implications for global agricultural trade. The results indicate that elimination of tariffs significantly boosts US exports to India and lowers Indian domestic prices, particularly for tree nuts, fresh fruit, and distilled spirits.
期刊介绍:
Applied Economic Perspectives and Policy provides a forum to address contemporary and emerging policy issues within an economic framework that informs the decision-making and policy-making community.
AEPP welcomes submissions related to the economics of public policy themes associated with agriculture; animal, plant, and human health; energy; environment; food and consumer behavior; international development; natural hazards; natural resources; population and migration; and regional and rural development.