Volume 3, Issue 1, February 2014, Page: 8-14
Econometric Assessment of a European and Indian Free Trade Agreement
Bodo Herzog, Department of Economics, ESB Business School, Reutlingen University, Reutlingen, Germany
Preeta George, S.P. Jain Institute of Management & Research (SPJIMR), Bhavans College Campus, Mumbia, India
Received: Mar. 27, 2014;       Accepted: Apr. 11, 2014;       Published: Apr. 20, 2014
DOI: 10.11648/j.jwer.20140301.12      View  3034      Downloads  169
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
Keywords
EU-India, Free Trade Agreement, Gravity Model, JEL Classification: F14, F15, F43, O43
To cite this article
Bodo Herzog, Preeta George, Econometric Assessment of a European and Indian Free Trade Agreement, Journal of World Economic Research. Vol. 3, No. 1, 2014, pp. 8-14. doi: 10.11648/j.jwer.20140301.12
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