Munich Personal RePEc Archive

The Determinants of India’s Imports: A Gravity Model Approach

Wani, Mr. Nassir Ul Haq and Dhami, Dr. Jasdeep Kaur and Rehman, Dr. Afzal Ur (2016): The Determinants of India’s Imports: A Gravity Model Approach.


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In order to understand the India’s import trade with its partners, this paper applies the generalized gravity model to analyse the import structure by employing the panel data estimation technique. The results portray that India’s imports are determined by the inflation rates, per capita income differentials and the overall openness of the countries involved in trade. It has been also found out that imports are influenced to a great degree by the common border, as the case is between India, China and Bangladesh. Furthermore, the country precise effects describe that the sway of neighbouring countries is more than that of distant countries on India’s imports.

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