Investigating the Determinants of India's Refined Petroleum Exports: Evidence from an Extended Gravity Model
Price: ₹ 500
Author: Kulwinder Singh, Jagmohan Singh and Naresh Singla
Author Address: Assistant Professor of Economics, University Business School, Panjab University, Chandigarh-160014 (Chandigarh), Assistant Professor of Economics, University Institute of Liberal Arts and Humanities, Chandigarh University, Mohali 143401 (Punjab), and Asso
Keywords: Exchange rate, extended gravity model, panel data analysis, refined petroleum exports, trade openness
JEL Codes: C23, F10, F14, Q37
Abstract
The present study examined the key determinants of India’s refined petroleum exports during 2002–2019 using an extended gravity model estimated through fixed-effects and random-effects panel regression techniques. The results showed that India’s GDP, partner-country GDP, trade openness of India and its trading partners, domestic population, China’s petroleum product exports, and export persistence positively and significantly influenced petroleum exports. In contrast, weighted distance, real exchange rate appreciation, foreign direct investment inflows, and international petroleum prices had significant negative effects. Institutional quality had a positive but statistically insignificant effect. The findings indicated that India’s refined petroleum export performance was driven mainly by demand conditions, trade openness, economies of scale, and strategic positioning in global energy markets. Policy priorities include stable exchange rate management, improved trade facilitation, investment in refining efficiency, and institutional strengthening to enhance export competitiveness.
Description
Indian J Econ Dev, 2026, 22(3), 592-602
https://doi.org/10.35716/IJED-26146