Afghanistan- India trade linkage: Collaboration and future prospects

Abstract

This study focuses on Afghanistan and India trade relations and evaluates the structure of comparative advantage for Afghanistan and India and the change in the economic scenario over a 3-year period from 2015 to 2017. The study attempted to evaluate Afghanistan-India trade using Revealed comparative advantage (RCA), Revealed import dependence (RID), Trade intensity index (TII), Export intensity index (TII) and Import Intensity Index (III) in different type of goods categorized on the basis of their production as per SITC Rev 3 classification. The policy implication for the both the countries is to rejuvenate the sectors where they are enjoying the trade advantage in order to get the competitive edge. JEL Classification: F07, F11, F13