Why did India Pull Out of Regional Comprehensive Economic Partnership (RCEP)? A Gravity Explanation of the Indian Puzzle

Q2 Environmental Science

Evergreen Pub Date : 2023-09-01 DOI:10.5109/7148433

None Gour Gobinda Goswami, None Md. Rubaiyath Sarwar, Mostafizur Rahman, None Dulal Chandra Panday, None Ishrat Jahan Ishita, Tahmid Labib, None Nartam Vivekanand Motiram

{"title":"Why did India Pull Out of Regional Comprehensive Economic Partnership (RCEP)? A Gravity Explanation of the Indian Puzzle","authors":"None Gour Gobinda Goswami, None Md. Rubaiyath Sarwar, Mostafizur Rahman, None Dulal Chandra Panday, None Ishrat Jahan Ishita, Tahmid Labib, None Nartam Vivekanand Motiram","doi":"10.5109/7148433","DOIUrl":null,"url":null,"abstract":": India’s decision to pull out from the Regional Comprehensive Economic Partnership (RCEP) was a surprise to analysts as RCEP is currently the most significant Free Trade Agreement (FTA). This paper examines the rationality of India’s decision. We used gravity set-up and Poisson Pseudo Maximum Likelihood (PPML) estimator to analyse India’s export and import data for nine sectors with 45 trading partners for the period 2001-2021. The results show that India’s export is inelastic to tariff while import to India is elastic to tariff. Export remains positive despite tariff on Indian export while import declines with tariff imposed by India. This rationalizes India’s decision to pull out from RCEP. At the sectoral level, tariff elimination reduces India’s export of vegetables, food, minerals and chemicals, plastics and plastics goods. However, tariff elimination increases India’s export of animal and animal food, leather, wood and wood products, textiles and foot ware. Tariff elimination increases import of vegetable, food stuffs, chemicals, plastic and leather to India. The sectoral results show that India has reason to doubt its gain from joining RCEP as the sectoral results are mixed and the overall gain might not be in favour of India.","PeriodicalId":12085,"journal":{"name":"Evergreen","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Evergreen","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.5109/7148433","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"Environmental Science","Score":null,"Total":0}

引用次数: 0

Abstract

: India’s decision to pull out from the Regional Comprehensive Economic Partnership (RCEP) was a surprise to analysts as RCEP is currently the most significant Free Trade Agreement (FTA). This paper examines the rationality of India’s decision. We used gravity set-up and Poisson Pseudo Maximum Likelihood (PPML) estimator to analyse India’s export and import data for nine sectors with 45 trading partners for the period 2001-2021. The results show that India’s export is inelastic to tariff while import to India is elastic to tariff. Export remains positive despite tariff on Indian export while import declines with tariff imposed by India. This rationalizes India’s decision to pull out from RCEP. At the sectoral level, tariff elimination reduces India’s export of vegetables, food, minerals and chemicals, plastics and plastics goods. However, tariff elimination increases India’s export of animal and animal food, leather, wood and wood products, textiles and foot ware. Tariff elimination increases import of vegetable, food stuffs, chemicals, plastic and leather to India. The sectoral results show that India has reason to doubt its gain from joining RCEP as the sectoral results are mixed and the overall gain might not be in favour of India.

查看原文本刊更多论文

印度为何退出区域全面经济伙伴关系协定(RCEP)?印度之谜的重力解释

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Evergreen Environmental Science-Management, Monitoring, Policy and Law

CiteScore

4.30

自引率

0.00%

发文量

期刊介绍： “Evergreen - Joint Journal of Novel Carbon Resource Sciences & Green Asia Strategy” is a refereed international open access online journal, serving researchers in academic and research organizations and all practitioners in the science and technology to contribute to the realization of Green Asia where ecology and economic growth coexist. The scope of the journal involves the aspects of science, technology, economic and social science. Namely, Novel Carbon Resource Sciences, Green Asia Strategy, and other fields related to Asian environment should be included in this journal. The journal aims to contribute to resolve or mitigate the global and local problems in Asia by bringing together new ideas and developments. The editors welcome good quality contributions from all over the Asia.