Munich Personal RePEc Archive

India's trade linkage with BRCS: An econometric study

Wani, Mr. Nassir Ul Haq and Dhami, Dr. Jasdeep Kaur and Sidana, Dr. Neeru (2016): India's trade linkage with BRCS: An econometric study.

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Abstract

India has put stress on enhancing trade relations with BRCS (Brazil, Russia, China and South Africa) economies, from the recent past. As a result India’s export to BRCS’s economies has been momentous. From the modeling exercise of this paper, the price and import elasticities of export flows attract a great deal of attention because of its significant implications on India’s export earnings from BRCS. Time series data ranging from 2000-2014 has been taken into consideration and to avoid non-stationarity issue on their level, DF and ADF test have been applied at level and first difference. In connection to the model results, Phillips-Hansen’s Fully Modified (FM) Method has been employed to get the estimated value of price and import elasticity of export demand for India. The results advocate that India’s export are appreciably prejudiced by BRCS economic growth and are very price competitive in the BRCS market. In other words, the depreciation of Indian rupee will be helpful for expanding India’s exports to BRCS.

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