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June 5, 2026PLoS ONEOpen Access

The impact of India-ASEAN free trade agreement on trade flows: An application of augmented gravity model

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Authors

PAPrajakta AroteHSHastimal SagaraJCJadhav Chakradhar

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Overview

Randomized trial analyzes the effects of the India-ASEAN FTA on trade flows, indicating significant implications for regional trade.

Key Points

  • This study aims to analyze how the India-ASEAN Free Trade Agreement affects trade flows using an augmented gravity model.
  • Analyzed panel data from 1990 to 2022 with 330 observations.
  • Utilized Generalized Least Squares (GLS) to address heteroskedasticity and cross-sectional dependency.
  • Examined determinants such as GDP, population, tariff rates, geographic distance, historical ties, and globalization.
  • ASEAN GDP has a positive impact on trade volumes, while India's GDP shows mixed effects.
  • Larger populations in both regions significantly enhance bilateral trade.
  • The FTA dummy is positive and highly significant, indicating that AIFTA substantially increased trade between India and ASEAN.

Cite This Study

Arote et al. (2026) studied this question.

synapsesocial.com/papers/6a2268d7763171746d5475b0https://doi.org/10.1371/journal.pone.0350036
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