Inter- and Intra-industry Trade Relations between Bangladesh and India: Empirical Results

2018 ◽  
Vol 7 (4) ◽  
pp. 280-292
Author(s):  
Anisul M. Islam
Keyword(s):  
Comparative Advantage ◽  
Relative Position ◽  
Bilateral Trade ◽  
Trade Deficit ◽  
Major Product ◽  
Global Trade ◽  
Industry Trade ◽  
Product Categories ◽  
Trade Relations ◽  
Economic Ties

Bangladesh and India are two neighbouring countries in South Asia having strong political, diplomatic, trade and economic ties with each other. This article reviews and updates on the inter- and intra-industry trade relationship between these two countries using more recent data. More specifically, it examines the relative position of the two countries in global trade followed by trends and patters of bilateral trade using aggregative data. At a disaggregate level, the commodity composition of Bangladesh exports to and imports from India by major product categories is examined focusing on the revealed comparative advantage (RCA) to review and update the degree of inter-industry trade. Further, the Grubel–Lloyd index (GLI; Grubel & Lloyd, 1975 ) is examined to measure the degree of intra-industry trade by major commodity groups. The article finds that India has a much stronger relative position in the global trade vis-à-vis Bangladesh. India is also found to dominate Bangladesh in bilateral trade, resulting in a very large and persistent trade deficit of Bangladesh with India. At a disaggregated level, the article finds that India has a comparative advantage in more products than Bangladesh and that the GLI shows that the degree of intra-industry trade is almost negligible between the two countries.

scholarly journals Trade Deficit of Bangladesh with China: Patterns, Propensity and Policy Implications

2021 ◽  
Author(s):  
Ekram Hossain ◽  
HUANG Dechun ◽  
Changzheng ZHANG ◽  
Ebenezer Nickson Neequaye ◽  
Vu Thi Van ◽  
...  
Keyword(s):  
Bilateral Trade ◽  
Trade Deficit ◽  
Policy Implications ◽  
Trade Intensity ◽  
Policy Recommendations ◽  
Policy Recommendation ◽  
Industry Trade ◽  
Export Specialization ◽  
Import Intensity

This paper aims to examine export, import and trade intensity, export specialization index, Herfindahl-Hirschman index for bilateral concentration and diversification indices to analyze the specializations, structure and trends of deficit in bilateral trade between Bangladesh and China from 1995 to 2018 and policy recommendations in this regard. The results reveal that the gap of export and import intensity between Bangladesh and China is widening rapidly perennial. The export specialization indices expose very significant outcomes where among the analyzed 16 sectors; 6 sectors exhibit high specialization, 3 sectors demonstrate medium, 3 sectors exhibit low and the rest of the 4 sectors disclose no specialization for Bangladesh’s export to China. The findings of the Herfindahl-Hirschman Index (HHI) reveal that from 1995 to 2010 the export of Bangladesh to China concentrated within few sectors but from the year 2011 to 2018 the export has been reclassifying steadily into diversification. The overall analysis of the indices suggests the necessity to be improved of the level of intra-industry trade between China and Bangladesh. Moreover, emphasis should be given to the sectors having a high specialization that endure the capacity to narrow the trade deficit. Furthermore, the export baskets of Bangladesh to China require to be diversified. Hereafter, various measures and implications are also suggested in the policy recommendation for further improvement.

scholarly journals Buying Friends? The Importance of Economic Flows in Assembling the Iraq War Coalition

2017 ◽  
Vol 23 (4) ◽  
Author(s):  
Robert Riegler ◽  
Piotr Lis ◽  
Mehtap Hisarciklilar
Keyword(s):  
Iraq War ◽  
Bilateral Trade ◽  
The United States ◽  
Partner Country ◽  
Trade Relations ◽  
International Policies ◽  
The Us ◽  
Bilateral Trade Flows ◽  
Good Trade ◽  
Economic Ties

AbstractEconomic ties between countries are likely to influence the alignment of their international policies. This paper investigates whether countries’ historical economic ties with the United States and their expectation of changes in future economic flows had a role in their decision to join the US-led coalition in Iraq from 2003 onwards. We use data on 115 countries over the period 2003–2009 to estimate panel random effects probit models of war coalition participation. We measure the intensity of economic ties with three variables: bilateral trade flows between the partner country and the US as well as FDI and aid flows from the US to the partner country. Our results suggest that both good trade relations prior to the conflict and the prospects of their further improvements increase the willingness of countries to join the coalition. In spite of the anecdotal evidence, we find no empirical evidence that the dependence on American FDI or aid affected countries’ decision on Iraq war participation.

Trends and Patterns of India’s Trade with Six EU Countries

2015 ◽  
Vol 11 (1) ◽  
pp. 39-60
Author(s):  
SANDEEP KAUR BHATIA ◽  
Amandeep Kaur
Keyword(s):  
Comparative Advantage ◽  
Bilateral Trade ◽  
Debt Crisis ◽  
Trade Agreement ◽  
Total Trade ◽  
Eu Countries ◽  
Trade Relations ◽  
Six Nations ◽  
Average Share ◽  
Trade Competitiveness

India and European Union trade relations go back to 1960s. Both sides started their bilateral trade relations after their first summit which, was held in 2000 and after that India-EU has gone through various rounds of summits and negotiations for improving the bilateral trade ties. As a result, Free Trade Agreement was agreed upon between them in 2007 but it is still not fully implemented. EU is India’s largest trading partner which has accounted 14.8 percent in its total trade in 2011. The study has taken up six nations of EU namely Belgium, France, Germany, Italy, Netherlands and UK as   India has a large average share of trade with these countries during 1996-2011. The study strives to find out the trade trends of India with these six EU countries namely Belgium, France, Germany, Italy, Netherlands and UK. The study  is an attempt to find out the trade competitiveness and patterns of India with these countries by using various indices like Revealed Comparative Advantage Index (RCA), Revealed Symmetric Comparative Advantage Index (RSCA) and Intra Industry Trade Index (IIT).  The study finds out that  European debt crisis have vigorously affected Indian pattern of trade with these six countries.   

Post-Brexit Global Trade Relations: The Death of TTIP?

2016 ◽  
Vol 17 (S1) ◽  
pp. 39-44
Author(s):  
Amanda Lyons-Archambault
Keyword(s):  
European Union ◽  
Bilateral Trade ◽  
Market Access ◽  
The United States ◽  
Global Trade ◽  
The European Union ◽  
Trade Relations ◽  
Economic Output ◽  
Transatlantic Trade ◽  
Challenges And Opportunities

Prior to Britain's popular referendum on whether to remain a member of the European Union, parts of the public in Britain and other European states had already expressed a great range of emotions concerning on-going negotations between the European Union and the United States regarding the bi-lateral Transatlantic Trade and Investment Partnership, more commonly referred to as “TTIP.” In February 2013, the European Commission optimistically projected that TTIP “would be the biggest bilateral trade-deal ever negotiated,” with the potential to “add 0.5% to the EU's annual economic output.” Most notably, TTIP seeks to streamline administrative rules and technical product standards in order to remove trade barriers, and aims to “achieve ambitious outcomes” across three broader areas—(a) market access, (b) regulatory issues and non-tariff barriers, and (c) rules, principles, and new modes of cooperation to address shared global trade challenges and opportunities.

scholarly journals EXPLORING INDONESIA-PARAGUAY TRADE POTENTIALS: A REVEALED COMPARATIVE ADVANTAGE APPROACH

2016 ◽  
Vol 12 (1) ◽  
pp. 54-64
Author(s):  
Sulthon Sjahril Sabaruddin ◽  
Sihar Tambun
Keyword(s):  
Comparative Advantage ◽  
Bilateral Trade ◽  
Trade Barriers ◽  
Revealed Comparative Advantage ◽  
Trade Relations ◽  
Index Analysis ◽  
Export Competitiveness ◽  
Comparative Advantages ◽  
Trade Potentials ◽  
Revealed Comparative Advantage Index

Artikel ini akan menganalisis potensi perdagangan bilateral antara Indonesia-Paraguay berdasarkan daya saing ekspor masing-masing. Tulisan ini dalam analisisnya menggunakan Comparative Advantage Index untuk tahun 2012 yang diperoleh dari World Integrated Trade Solution (WITS). Makalah ini mengungkapkan bahwa ada peluang besar bagi kedua negara untuk lebih memperkuat hubungan perdagangan bilateral. Berdasarkan analisis RCA Index, diungkapkan bahwa secara umum kedua negaratelah mengekspor komoditas mereka berdasarkan keunggulan komparatif masing-masing, namun bagaimanapun ekspor kedua Negara saat ini tidak mencerminkan potensi mereka,  Paraguay (tidak untuk Indonesia) yang sepuluh komoditas unggulannya dengan keunggulan komparatif yang kuat tidak dapat menembus pasar kedua belah pihak. Studi ini menyarankan kedua Negara harus menghapus hambatan perdagangan mulai dengan menyediakan akses untuk 10 komoditas ekspor dengan keunggulan komparatif kuat untuk masuk di kedua negara. Langkah ini bias menjadi batuloncatan menuju penguatan hubungan perdagangan bilateral.   This paper attempts to analyze the Indonesia-Paraguay bilateral trade potentials based on their respective export competitiveness. The analysis uses the Revealed Comparative Advantage Index for year 2012 obtained from World Integrated Trade Solution (WITS). The paper reveals that there are huge opportunities for both countries to further strengthen bilateral trade relations. Based on the RCA Index analysis, the paper revealed that in general both countries have exported their commodities based on their respective comparative advantages, but however both countries current exports still do not reflect their potentials as most for Paraguay (none for Indonesia) of the top ten commodities with the strongest comparative advantage were unable to penetrate both sides market. This study suggests both countries should remove trade barriers starting by providing access for the top 10 export commodities with the strongest comparative advantage to penetrate in both countries. This step could be a stepping stone towards strengthening bilateral trade relations.

scholarly journals The Impacts of Indonesia and Russia Trade Relations on Indonesia’s Maritime Security

2020 ◽  
Author(s):  
Hendra Manurung
Keyword(s):  
21St Century ◽  
Bilateral Trade ◽  
Descriptive Analysis ◽  
Trade Deficit ◽  
Joint Commission ◽  
Technical Cooperation ◽  
Trade Relations ◽  
Bilateral Relations ◽  
The Republic ◽  
In The Beginning

This article is to examine the increasing development of the bilateral trade relations between the Republic of Indonesia and the Russian Federation. Also it aims at studying the Indonesia-Russia trade relations on Indonesia’s national security. Thus, in pursuit of its national interest, Indonesia is working very hard to further strengthen its bilateral trade relations with Russia. Marking the 50 year old relationship in the beginning of the 21st century, the two countries have booked an increasing trade in their relations. This research employed qualitative research methods featuring descriptive analysis of the data on the bilateral relations within “The Framework of Friendly and Partnership in the 21st century”. Therefore, the author exposed the works of two main consultation mechanisms, namely the Indonesian-Russian Joint Commission on Trade, Economic and Technical Cooperation and the Joint Commission on Military Technical Cooperation under the President Megawati Sukarnoputri administration (2003 - 2004), succeeded by the 1st team of President Susilo Bambang Yudhoyono (2004 -2009) and the 2nd team of President Susilo Bambang Yudhoyono (2009-2014), and President Joko Widodo (2014 - present). An increase is recorded in the overall trade relations of the two countries. Nevertheless, Indonesia still suffered from trade deficit. In addition, the Indonesian defense capability has increased.  

The Impact of Incoming US Administration on Global Trade Relations

2017 ◽  
pp. 21-41
Keyword(s):  
United States ◽  
Trade Deficit ◽  
The United States ◽  
Trading Partner ◽  
Global Trade ◽  
Trade Relations ◽  
Trade Deals ◽  
The Impact ◽  
United States Trade

Why did it take decades and an “unconventional” President to realize that the United States had significantly lost out to a “trading partner”? For 2017, United States trade deficit with China was estimated as being over $300 billion. What can be said for now – and what is certain for sure, is that trade gains made by the United States' formidable trading partner, China, were evident – but that millions of Americans either failed to acknowledge its potential or the possibility that it could eventually – and even soon, replace the world's economic leader. It is also possibly the case that it is much clearer for the general populace that are worst hit by the “unbeneficial” trade deals, to see through the picture – and realize what is happening, than those wealthier classes living in “La La land”.

scholarly journals A STUDY ON INDIA’S BILATERAL TRADE WITH JAPAN

2020 ◽  
Vol 8 (4) ◽  
pp. 349-361
Author(s):  
Radha Raghuramapatruni ◽  
Asha Latha. D
Keyword(s):  
Bilateral Trade ◽  
Annual Data ◽  
Cooperation Agreement ◽  
Commodity Trade ◽  
Trade Relations ◽  
Secondary Sources ◽  
Gravity Coefficient ◽  
Trade Potential ◽  
Trade Share ◽  
Economic Ties

Purpose of the study: India and Japan share strong cultural and economic ties. The economic relationship between the two Asian giants strengthened with the signing of the CECA agreement during the year 2011. The current research would focus on assessing the bilateral trade relations between both the countries and attempts to identify the commodity trade potential to enhance the future trade between them. Methodology: The study is based on secondary sources of data collected through the United Nations Conference for Trade and Development, WTO, IMF, RBI, and the Japanese Trade Databases. The annual data for the period 2005 to the year 2016 has been used to analyse the Intensity Indices and the Gravity Coefficient values between India and Japan. Similarly, the annual data from the year 2008 to 2015 is used to calculate the RCA and RID index values and finally, the average RCA and RID (2008-2016) are used for analysis to identify the commodity trade potential between both the countries. Main Findings: The study concludes that the trade share of Japan in India’s overall trade has been falling significantly over the years which could be seen through the declining Export Intensity and Import Intensity Indices of India with Japan. However, the overall analysis presents that 28 commodities were feasible for trade between India and Japan from the 56 commodities computed for the study which exhibits a strong potential for enhancing future bilateral trade relations between both the countries. Applications of this study: India had made a strategic move with its Look East Policy during the year 1991 to accelerate its trade relations with the East Asian countries and later with its success the same was transformed into Act East Policy during the year 2014. The current study would prove to be useful in shaping the policy changes in this direction. Novelty/Originality of this study: The study focuses on the bilateral trade relations between the two important Asian giants, India, and Japan during the post comprehensive economic cooperation agreement between the two. Further, the study identifies the areas of commodity trade potential which paves the direction for new trade between the countries to tap the untapped trade potential.  

scholarly journals Trade Deficit of Bangladesh with China: Patterns, Propensity and Policy Implications

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Md Ekram Hossain ◽  
◽  
HUANG Dechun ◽  
Changzheng ZHANG ◽  
Ebenezer Nickson Neequaye ◽  
...  
Keyword(s):  
Bilateral Trade ◽  
Trade Deficit ◽  
Policy Implications ◽  
Trade Intensity ◽  
Policy Recommendations ◽  
Policy Recommendation ◽  
Industry Trade ◽  
Export Specialization ◽  
Import Intensity

This paper aims to examine export, import and trade intensity, export specialization index, Herfindahl-Hirschman index for bilateral concentration and diversification indices to analyze the specializations, structure and trends of deficit in bilateral trade between Bangladesh and China from 1995 to 2018 and policy recommendations in this regard. The results reveal that the gap of export and import intensity between Bangladesh and China is widening rapidly perennial. The export specialization indices expose very significant outcomes where among the analyzed 16 sectors; 6 sectors exhibit high specialization, 3 sectors demonstrate medium, 3 sectors exhibit low and the rest of the 4 sectors disclose no specialization for Bangladesh’s export to China. The findings of the Herfindahl-Hirschman Index (HHI) reveal that from 1995 to 2010 the export of Bangladesh to China concentrated within few sectors but from the year 2011 to 2018 the export has been reclassifying steadily into diversification. The overall analysis of the indices suggests the necessity to be improved of the level of intra-industry trade between China and Bangladesh. Moreover, emphasis should be given to the sectors having a high specialization that endure the capacity to narrow the trade deficit. Furthermore, the export baskets of Bangladesh to China require to be diversified. Hereafter, various measures and implications are also suggested in the policy recommendation for further improvement.

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