New Zealand and Indian Trade in Agricultural and Manufactured Products: An Empirical Analysis

Sayeeda Bano and Francis Scrimgeour

Working Papers in Economics from University of Waikato

Abstract: This study examines and presents a model of manufactured and agricultural exports from New Zealand to India and the world and from India to New Zealand. Our findings show that a country’s population, GDP, GDP per capita and exchange rate are important causal factors that influence both New Zealand’s and India’s agricultural and manufactured exports. Our findings also demonstrate that New Zealand agricultural exports are highly elastic with respect to average population, showing that a one percent increase in the average population/or market size can increase New Zealand agricultural exports to India by six percent. This is contrary to the conventional wisdom about low elasticity pessimism with respect to agricultural products. These results have policy implications in the context of trade negotiations between New Zealand and India at the bilateral level and the Regional Comprehensive Economic Partnership (RCEP) in which both New Zealand and India are participating.

Keywords: international trade; agricultural exports; manufactured exports; India-New Zealand Free Trade Agreement FTA; RCEP (search for similar items in EconPapers)
JEL-codes: F01 F02 F10 F13 F14 Q1 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2017-10-27
New Economics Papers: this item is included in nep-agr and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:wai:econwp:17/26

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