Infrastructure as a determinant of foreign trade in India and China
The main objective of this paper is to examine the role of infrastructure in enhancing the volume of trade in India and china. It was during the late 1990s both nations tried to globalise more into the world economic system. But the trade performance is not similar in India as well as in china. The present study empirically examines the trade performance is relation to the availability of export and imports. The study is based on time series data from 1990 to 2012. The individual and simultaneous regression analysis is applied to find out the causal effect relationship between infrastructure and trade. The stationary of the data is checked with the help of unit root test. Data has been converted into stationary. From the analysis, it is clear that in China the infrastructure variables are significant and positively related with trade. In India though the infrastructure variables are significant but the R2 and regression coefficient of infrastructure variables on trade is insignificant in all most all the variables.