TY  - JOUR
AB  - Purpose The present study is an attempt to evaluate the impact of the proposed India-China free trade agreement (FTA) in goods trade on both countries under a static general equilibrium framework.Design/Methodology/Approach The study has utilized the Global Trade Analysis Project (GTAP) model of world trade with the presence of skilled and unskilled unemployment in the world. For analysis purposes, 57 GTAP sectors, representing the whole regional economy, have been aggregated into 43 sectors and 140 GTAP regions, representing the whole world, have been aggregated into 19 regions. The study has also used the updated tariff rates provided by the World Trade Organization for better results. Findings The preliminary analysis using trade indicators depicted that by utilizing their own comparative advantage, both of the countries can maximize their gains by exporting more to the world. The simulation results from the GTAP analysis revealed that a tariff reduction in all goods trade would be more beneficial for both the countries than the tariff reduction in each other's specialized products. All other regions lose in terms of shifting the Indian imports towards China in a post-simulation environment. Regions with a significant loss are: the European Union (28 members), Southeast Asia, the Unites States, Japan, Korea, West Asia, and the European Free Trade Association (EFTA).Originality/Value The disaggregated sector-wise analysis has been performed using the latest available GTAP database, version 9.
VL  - 8
IS  - 2
SN  - 1851-6599
DO  - 10.1108/JCC-08-02-2015-B002
UR  - https://doi.org/10.1108/JCC-08-02-2015-B002
AU  - Arora Rahul
AU  - Singh Sarbjit
AU  - Mathur Somesh K.
PY  - 2015
Y1  - 2015/01/01
TI  - Assessment of the Proposed India-China Free Trade Agreement: A General Equilibrium Approach
T2  - Journal of Centrum Cathedra: The Business and Economics Research Journal
PB  - Emerald Group Publishing Limited
SP  - 81
EP  - 108
Y2  - 2024/09/21
ER  -