Revealed Comparative Advantage and Gravity Model Analysis of Trade Patterns and Regional Economic Integration

This monograph presents the available research analyses on three important issues of revealed comparative advantage, gravity model and regional economic integration in the Indian context post economic liberalisation. Empirical evidence for each issue has been discussed to highlight the dynamism and evolution in the Indian manufacturing sector and trade patterns over the last more than two decades. For a comparative perspective, some empirical analysis on the Chinese economy is also presented. India's preferential trade agreements with ASEAN and East Asian economies have been examined in the context of Pan Asian economic integration and its economic advantages for India as also relative to the progress of similar initiatives with the South Asian economies. While some definite economic progress has been achieved, available research also provides evidence of India's yet unexploited regional and global trade potential as well as slow to evolve comparative advantage structure. The research highlights as thus presented may be useful in policy shaping in the important fields of India's trade policy and participation in regional economic integration.