International Journal of Social Science & Economic Research
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Title:
INDIA'S BILATERAL TRADE WITH AFRICAN LDCS: AN EMPIRICAL ANALYSIS

Authors:
Swatilekha Thakur, Shahid Ahmed

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1Swatilekha Thakur, 2Shahid Ahmed
1. Ph.D Research Scholar, Department of Economics, Jamia Millia Islamia, New Delhi- 110025, India
2. Professor, Department of Economics, Jamia Millia Islamia, New Delhi- 110025, India

MLA 8
Thakur, Swatilekha, and Shahid Ahmed. "INDIA'S BILATERAL TRADE WITH AFRICAN LDCS: AN EMPIRICAL ANALYSIS." Int. j. of Social Science and Economic Research, vol. 4, no. 2, Feb. 2019, pp. 1200-1220, ijsser.org/more2019.php?id=89. Accessed Feb. 2019.
APA
Thakur, S., & Ahmed, S. (2019, February). INDIA'S BILATERAL TRADE WITH AFRICAN LDCS: AN EMPIRICAL ANALYSIS. Int. j. of Social Science and Economic Research, 4(2), 1200-1220. Retrieved from ijsser.org/more2019.php?id=89
Chicago
Thakur, Swatilekha, and Shahid Ahmed. "INDIA'S BILATERAL TRADE WITH AFRICAN LDCS: AN EMPIRICAL ANALYSIS." Int. j. of Social Science and Economic Research4, no. 2 (February 2019), 1200-1220. Accessed February, 2019. ijsser.org/more2019.php?id=89.

References
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Abstract:
The Indian economy has widened its economic partnership with African LDCs during the last decade especially after the implementation of the Duty Free Tariff Preference (DFTP) scheme by Government of India in 2008. The present study gives an overview on trade relations between India and African LDCs in two separate analyses. First, it analyzes the trend and pattern in the trade relations between the countries from the year 2002-2017. It is found that the trade volume of both the reporter and partner countries has been increased over the years up to 2014 and thereafter it has shown a downfall. Secondly, this study uses Trade Intensity Index (TII) and Revealed Comparative Advantage (RCA) index to identify the complementary and competing sectors of trade between India and African LDCs. Results from the TII shows that trade between India and African LDCs are more intense as compared to rest of the world. In addition, the result of the Bilateral Revealed Comparative Advantage (BRCA) shows that India possesses a high comparative advantage in a wide variety of products including, machinery, manufacturing and highly demanded primary products, whereas African LDCs possess comparative advantage in a limited range of products including some low costs primary and industrial products. Overall, the trade relationship between the countries is intensive and stable. However, like India has been enjoying bilateral comparative advantage extensively, African LDCs too need to seek more products including manufacturing and machinery in order to expand its export basket.