Impact of Sri Lanka's free trade agreement with China on India Online publication date:: Tue, 09-Jan-2018
by Chandrima Sikdar
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 10, No. 4, 2017
Abstract: In October 2014 a free trade agreement (FTA) between Sri Lanka and China was announced with a time frame of June 2015 for signing the agreement. On the other hand, Sri Lanka and India have an FTA since 2000 and a CEPA between them is under negotiation. Thus, the emerging trade dynamics between India and Sri Lanka due to this FTA calls for an in-depth study. The present study attempts to do this. Using the global trade analysis project (GTAP) the study does a number of simulations by calibrating trade liberalisation scenarios between Sri Lanka and China and studies the impact of the proposed FTA on its partners and the consequent impact on India. The results show that Sri Lanka's trade with India would fall as it will find it beneficial to substitute goods of Indian origin with goods of Chinese origin. While Sri Lanka takes home mostly positive gains, India's loss due to this FTA are pretty much apparent.
Online publication date:: Tue, 09-Jan-2018
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org