Democracy, Trade, and Bilateral Conflict between India and her neighbours

Research output: Contribution to conferencePaperpeer-review


This paper tries to apply the dominant theory of democracy leading to greater international trade and the effect of trade on cooperation in the context of India and her neighbours by using the Hilderth-Lu model to regress trade volume against joint democracy score of the two countries, controlling for GDP growth, government debt and the global economy growth rates. Graphical analysis has been employed to see the dynamics of trade and cooperation over the period 1980 to 2010. The bilateral relationship of Bangladesh, Bhutan, Nepal, Pakistan and Sri Lanka with India has been examined individually and it has been noted that the linkages work differently in different contexts. Democracy has an ambiguous effect on bilateral trade, but greater volume of bilateral trade and its growth leads to longer periods of peace and prevention of full-scale war.
Original languageEnglish
Publication statusUnpublished - 2014
Event11th South Asia Economics Students' Meet - Thimpu, Bhutan
Duration: 22 Dec 201429 Dec 2014


Conference11th South Asia Economics Students' Meet
Abbreviated titleSAESM


  • democracy
  • bilateral trade
  • regional cooperation
  • Time series


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