Econometric Assessment of a European and Indian Free Trade Agreement
Bodo Herzog,
Preeta George
Issue:
Volume 3, Issue 1, February 2014
Pages:
8-14
Received:
Mar. 27, 2014
Accepted:
Apr. 11, 2014
Published:
Apr. 20, 2014
Abstract: This article focuses on potential economic implications of a free trade agreement (FTA) between the European Union (EU) and the Indian Federation. The economic implications are evaluated by estimating an extended gravity model for all existing FTAs with the Indian Federation. Moreover, we control for the trade contribution of EU member countries in our econometric model during the period from 1990 until 2008. The results show a significant increase in trade, if there is a free trade agreement between India and another country. Interestingly, we find that India has the largest positive impact from FTAs with more advanced economies. Thus, we reaffirm the potential benefits of trade relationships between the EU and India
Abstract: This article focuses on potential economic implications of a free trade agreement (FTA) between the European Union (EU) and the Indian Federation. The economic implications are evaluated by estimating an extended gravity model for all existing FTAs with the Indian Federation. Moreover, we control for the trade contribution of EU member countries in...
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