Title: Determinants of India-ASEAN trade: an augmented gravity model analysis

Authors: Mohd Kashif

Addresses: Department of Commerce, Zakir Husain Delhi College (Evening), University of Delhi, New Delhi, India

Abstract: Gravity model is a widely used method to describe the determinants of foreign trade between the countries. The basic gravity model can be augmented by using other variables. The article identifies the determinants of India's trade with ASEAN countries by using the augmented gravity model so that India can formulate policies after considering all those factors which have a significant influence on India's trade with ASEAN countries. It is found from the article that GDP of both India and ASEAN countries have a significant impact on India's trade with ASEAN countries. Distance variable is also affecting India's trade with ASEAN countries but negatively. India and ASEAN both have a common experience of colonial relationships and this variable has a significant impact on India's trade with ASEAN. It is also found from the article that common border, common language and AIFTA are not influencing India's trade with ASEAN countries.

Keywords: augmented gravity model; India; Association of South-East Asian Nations; ASEAN; ASEAN-India Free Trade Agreement; AIFTA; COVID-19; trade.

DOI: 10.1504/IJICBM.2024.136807

International Journal of Indian Culture and Business Management, 2024 Vol.31 No.2, pp.231 - 242

Received: 28 May 2022
Accepted: 06 Aug 2022
Published online: 22 Feb 2024 *

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