Exports Of Intermediate Goods Research Articles

The Impact of Anti-Dumping Measures on the Export of Intermediate Goods in Chinese Manufacturing Industry - Based on the perspective of ownership of importing firms

Abstract This paper links the OECD-ICIOMNE database with the OECD analytical AMNE database. Based on the ownership of importing countries' enterprises, it dissects the scale of intermediate product exports in the Chinese manufacturing industry. Furthermore, it combines this analysis with the Temporary Trade Barriers Database to explore the heterogeneous effects of anti-dumping measures on the scale of intermediate product exports. The study finds that: (1) The scale of intermediate product exports from the Chinese manufacturing industry to domestically owned enterprises in importing countries is higher than that to the third-country multinational corporations within the importing country, with the lowest scale observed for exports to Chinese multinational corporations located within importing countries' borders. (2) Under the impact of anti-dumping measures, the negative effect on the scale of intermediate product exports to domestically owned enterprises in importing country is greater than that on exports to the third-country multinational corporations within the importing country. However, exports to Chinese multinational corporations within importing countries' borders don’t experience a significant impact. (3) The endowment of factors in Chinese manufacturing industries and the regions to which importing countries belong will lead to heterogeneous impacts on the relationship between anti-dumping measures and the scale of intermediate product exports. Keywords: Scale of Intermediate Product Export, Importing Country, Domestically Owned Enterprise, Chinese Multinational Corporation, Third-country Multinational Corporation.

Exports of intermediate goods and innovation: Evidence from China’s firms

Based on the experience of developed countries, the production and export of intermediate goods have been observed to foster innovation within firms. This study investigates whether China's export of intermediate products has significantly enhanced the independent innovation capability of China’s firms. Using microdata and patent applications as a measure of innovation, we adopt the staggered PSM-DID method to explore the influence of China’s intermediate exports on firm innovation. We find that China's export of intermediate goods positively influences firm innovation, particularly utility patents. Domestic firms benefit more from this effect than foreign firms, and medium-high technology industries experience the most significant innovation impact. The export of intermediate goods stimulates innovation through the following channels: scale economies and employment structure optimization. These findings shed light on China's evolving innovation landscape.

A Study of the Effects of China’s TBT Notifications on Korean Exports

Since China joined the World Trade Organization (WTO) in 2002, the number of technical barriers to trade (TBT) notifications has increased rapidly. This study investigates the impact of China’s imposition of TBTs on the exports of Korean manufacturing-industry from 2002 to 2014. We focus on the following aspects: exports in terms of value-added, a comparison of exports of final goods with exports of intermediate goods, and specific trade concerns (STCs). Our findings are as follows. First, China’s TBTs have an insignificant impact on Korean manufacturing exports to China when we investigate the whole manufacturing industry sector. Second, as a result of analyzing final goods and intermediate goods separately, we do not find a significant effect of TBTs on the export of intermediate goods, whereas they have negative effects on the export of final goods. This is in line with our expectations that China does not want to restrict the import of intermediate goods. Third, further analysis of the relationship between exports and TBT STCs is conducted. However, we find no additional negative effect of TBT STCs on exports. Fourth, the impact of TBTs on exports in value-added terms does not seem to differ from the impact on total gross exports.

대만과 주요 국가간 경제적 상호파급효과 분석

In this study, Taiwan’s dependence on China for the import and export of intermediate goods was found to be at a very high level. It shows the necessity for Taiwan to reduce the dependence on China in supply chain management. At the same time, it suggests that for Taiwan maintaining stable cooperation relations with China is also important. Meanwhile, the proportion of imports from Taiwan out of China’s imports of intermediate goods was the highest in the world. It indicates that Taiwan is of great importance for China as well.
 According to the I-O analysis, the most beneficial country from Taiwan’s electrical and optical equipment industry production was China (US$ 105 billion in value added). It means that 46.4% of the global spillover effects (excluding Taiwan) from the industry production of Taiwan belongs to China., followed by U.S.(10.3%), Japan (7.5%), and Korea (6.7%). In addition, the electrical and optical equipment industry in Taiwan’s industries was found to be the industry that has a great influence on China and IPEF participating countries. It confirms that there is a close interdependence relationship between these countries in the industry.
 The results of this study implies that although political and military conflicts between China and Taiwan have recently deepened, considering their economical interdependence, it would be not easy for bilateral conflicts to be sustained in the medium to long term.

Exports from developing countries and outward foreign direct investment: An empirical analysis

This empirical study investigates how exports from developing countries are influenced by outward foreign direct investment. By classifying developing economies into subgroups based on income (low-income countries, lower-middle-income countries, upper-middle-income countries), as well as at the regional level (Africa, Asia, Latin America, and the Caribbean), this study also tries to analyze the variation in this association at different levels of development and across different geographical regions. The study uses imbalanced panel data from 64 developing countries spanning the years 1990 to 2019 for estimation purposes and employs panel estimation techniques of fixed and random effects model. The results suggest that at the aggregate level, outward foreign direct investment has a complementary impact on the home country export performance of developing countries. Moreover, middle and upper middle-income groups of developing countries also indicate the complementary effect of investing abroad on home country exports. At the regional level, results indicate that in Asia, this complementary effect is more vital than in any other region of developing countries. It may be due to the high share of outward FDI from Asian developing countries, which leads to more exports of intermediate goods and headquarter activities from home countries. On the contrary, results indicate that OFDI substitutes for home country exports in the group of Latin America and the Caribbean countries, and these countries have a smaller and relatively more volatile share in total world outward FDI. The general complementary type relationship between OFDI and the home country's exports highlights the need to consider OFDI as a part of national development plans to attract much-needed foreign exchange reserves for the growth and development of developing countries.

COVID-19, trade collapse and GVC linkages: European experience.

This paper highlights the role of supply chain linkages for the transmission of COVID‐19‐induced shocks based on the monthly trade of the European Union Member States during the first wave of the COVID‐19 pandemic. Using the framework of the gravity model, we find an overall decline of over 20% in trade among EU countries following the COVID‐19 outbreak. Both supply and demand shocks are shown to contribute to this trade decline associated with COVID‐19 in the origin and destination country proxied by either infection rate or policy stringency index. While import demand shocks have an immediate effect on trade decline, the trade becomes increasingly sensitive to the COVID‐19 situation in the origin country over time. Moreover, the results confirm that forward global value chain (GVC) linkages act as a channel for the transmission of (demand) shocks in supply chain trade. Indeed, an increase in the incidence of COVID‐19 cases in the destination country leads to a larger decrease in domestic exports of intermediate goods in those destination countries with which a country has stronger forward linkages, that is in partners positioned further downstream. We also find the ‘China effect’, with the transmission of the COVID‐19 shock from the partner country amplified when the share of supply chain trade with China is higher. On the other hand, we fail to find robust evidence for the transmission of COVID‐19‐induced shocks via backward linkages.

미중 디커플링의 GVC 파급영향 추정

Purpose : US policy towards China now focuses on decoupling. Due to decoupling, the supply chain based on the existing global value chain (GVC) will have to be adjusted to a large extent, and the production network in Asia, centered on China, will be reorganized.
 Research design, data and methodology : This paper is the first to quantitatively estimate the effect of the US decoupling policy. Decoupling will seriously hit the backward and forward linkages of China's GVC, but US GVCs will not be significantly affected.
 Results : Due to decoupling, Korea’s exports of intermediate goods to China will likely be greatly reduced, and value-added exports will decrease by US$65.7 billion to US$120.5 billion.
 Conclusions : The GVC impact analysis in this paper shows Korea should seek an active industrial policy to strengthen forward linkages while minimizing backward linkage losses.

Investigation of Nigeria’s Comparative Advantage for the African Continental Free Trade Area

Nigeria’s comparative advantage for the African Continental Free Trade Area (AfCFTA), has been investigated by this work. The specific objectives of this study are calculating the Revealed Comparative Advantage (RCA) and the Revealed Symmetric Comparative Advantage (RSCA) of Nigeria, and computing and comparing the Revealed Comparative Advantage (RCA) and the Revealed Symmetric Comparative Advantage (RSCA) of Nigeria, Ghana and South Africa. Time series data of Nigeria’s, Ghana’s and South Africa’s export products namely raw materials, intermediate goods, consumer goods and capital goods were obtained from the World Integrated Trade Solution (WITS). The RCA and RSCA of raw materials, intermediate goods, consumer goods and capital goods were computed using the Balassa index, and it was found that Nigeria has comparative advantage in the export of raw materials but has comparative disadvantage in the export of intermediate goods, consumer goods and capital goods. Compared to Ghana and South Africa, Nigeria can profitably export raw materials to AfCFTA trade partners because, though Ghana and South Africa also have comparative advantage in the export of raw materials, theirs is lesser than Nigeria’s. Unlike Nigeria, Ghana and South Africa have relative advantage in intermediate goods export trade. In the export of consumer goods, Nigeria, Ghana and South Africa all have comparative disadvantage, but the position of South Africa is better than that of Nigeria and Ghana. Similarly, Nigeria, Ghana and South Africa have comparative disadvantage in the export of capital goods, however, the position of South Africa is better than those of Nigeria and Ghana. Based on the findings, this study recommends that Nigeria should continue to strengthen its raw materials exports and at the same time, pursue policies and programmes that would improve the comparative advantage positions of its intermediate goods, consumer goods and capital goods export trade. In the area of trade negotiations, the findings of this study has been recommended to the Nigerian Office for Trade Negotiations (NOTN) for adoption in its preparations of guidelines on the rules of origin for stakeholders’ negotiations under AfCFTA Key words: Revealed Comparative Advantage, Revealed Symmetric Comparative Advantage, Goods, Free Trade Area, Nigeria. JEL Classification Codes: F10, F11, F12, F14.

도약인가 정체인가?

This study evaluated the growth of the Chinese pharmaceutical industry in terms of GVC using OECD-TiVA (2021). China's global value-added production and export share, its participation in front-to-back GVCs, and the share of domestic value-added included in intermediate goods exports have all increased rapidly. On the other hand, the Chinese pharmaceutical industry still relies on huge internal and external demand for low-cost generics, and R&D innovation is also not showing clear results in terms of added value at the GVC level. In other words, quantitative growth through increased production is remarkable, but qualitative development through technological innovation is stagnant. If global pharmaceutical companies' IPR checks and the US technology pressure continue, the Chinese pharmaceutical industry will continue to experience difficulties in transitioning to high-value-added industries, and the low-value-added GVC participation structure may become more entrenched. The Chinese government and companies are making efforts to achieve qualitative development by investing intensively in the biopharmaceutical industry, but it is still uncertain whether such an attempt will be successful due to the nature of the industry where the R&D technology cycle is long and the existing global companies are competitive.

Testing environmental Kuznets curve hypothesis: considering the impact of Sino-US trade on three main industries in China.

To achieve carbon neutrality and carbon reduction goals, China needs to consider industrial structure and trade. This study aims to test the validity of environmental Kuznets curve (EKC) hypothesis at the industry level in China and study the different impact of Sino-US trade in intermediate goods and trade in final goods on China's environment. To do so, we used the annual data of China's 25 sectors in 1990-2015 and classified 25 sectors into three main industries. Based on the Stochastic Impacts by Regression on Population, Affluence and Technology framework, we investigated the validity of EKC hypothesis and the driving factors of greenhouse gas (GHG) emissions. The results show that (1) EKC hypothesis is verified for the country and the tertiary industry. (2) Compared with the primary industry and the secondary industry, the economic growth of the tertiary industry brings less GHG emissions. (3) Intermediate goods exported to all sectors in the USA will increase GHG emissions in the country and the three main industries, but final goods exported to consumers in the USA will reduce GHG emissions except the tertiary industry. From our results, the EKC hypothesis is a suitable model for environmental policy in tertiary industry, but it does not apply to the primary industry and the secondary industry. Environmental policy in the primary industry and the secondary industry needs to focus on reducing energy intensity. In the case of exports to the USA, intermediate goods pollute the environment, while final improve the environment. Thus, China needs to increase controls on exports of intermediate goods with low added value and high pollution and gradually shift to the production of environmentally friendly final goods.

Non‐tariff measures and Vietnam's export performance

The increasing importance of non‐tariff measures (NTMs) in international trade today presents a challenge for developing countries that are following an export‐led growth strategy. This paper investigates the effects of NTMs on Vietnamese exports. It considers NTMs imposed by importing countries and by the Vietnamese government itself. We find that for importing countries' NTMs the technical measures have a positive effect on Vietnamese exports, especially intermediate goods. Final products seem to be the target of non‐technical measures used by importing countries. With regard to Vietnam's export‐related NTMs, technical measures seem to be effective in increasing Vietnam's exports of final products to importing countries with a level of per capita income below US$11,462. For those importing country markets, the positive marginal effect of Vietnam's export‐related technical measures on exports of final products is higher in poorer countries. On the other hand, the non‐technical categories tend to negatively affect Vietnamese exports of intermediate goods.

Impact of Economic Policy Uncertainty on the Stability of Enterprises Embedded in a Global Value Chain

Abstract The world economic situation is unpredictable, and uncertain factors accompany each other. Economic policy uncertainty (EPU) has become the main factor affecting sustainable economic development and the stability of enterprises embedded in the global value chain (GVC). This paper uses the duration of embeddedness in the GVC to measure the stability of the embedded GVC and explores the impact of domestic and foreign EPU on the stability of Chinese enterprises embedded in the GVC. The results show that the stability of Chinese enterprises embedded in the GVC is low; domestic and international EPU reduces the stability of Chinese enterprises embedded in the GVC; and international EPU significantly reduces the stability of private enterprises, foreign invested enterprises and enterprises involved in import and export of intermediate goods embedded in the GVC, while domestic EPU significantly reduces the stability of state-owned enterprises, private enterprises, large, medium and small enterprises and enterprises involved in import and export of intermediate goods embedded in the GVC. In the influence mechanism, domestic EPU inhibits the innovation ability of enterprises and then affects the stability of enterprises embedded in the GVC. JEL classification numbers: F620, F680 Keywords: Economic policy uncertainty, Global value chain, Stability, Duration.

The determinants of the intermediate products export: The case of Switzerland

Abstract. International trade relations are an important aspect of the international economy. The form and structure of international trade has changed in recent years and this fact deserves particular analysis. Global value chains are an significant objectivity in today's times. It is noteworthy that global supply (or value) chains are basically the production networks that span multiple countries, with at least one country importing inputs (intermediate goods) and exporting production (final goods). Many products in today's era consist of intermediate inputs from other countries. The proportion of intermediate goods that a country exports helps it to become a key trading partner. Value-added imports have such an essential role in the exports of countries that they ultimately determine the price of final goods. Moreover, intermediate goods have the characteristic of being shaped on the basis of their technological level. That is, an input can be labour-intensive or technology-intensive. Virtually any commodity can be considered an intermediary. There is no clear definition of intermediate goods. This point, of course, makes it difficult to identify those factors which determine the exports of intermediate goods. In this reality the exports of intermediate goods are worthy of further research. The present study will attempt to investigate the determinants of intermediate goods exports using Switzerland as a case study. The methodology adopted is Linear Regression - Ordinary Least Squares (OLS). Keywords. Global Trade, Switzerland, Intermediate Product Exports, OLS. JEL. F10, F14, F40.

Global production sharing and trade effects: an analysis of Eurasian Economic Union

This study examines the trade effects of the Eurasian Economic Union on global production sharing. We use a panel dataset of bilateral exports of intermediate goods, parts and components and final assembly for 12 Eurasian countries with 28 partners for 2000–18. We estimate a gravity model using the Poisson Pseudo Maximum Likelihood method to mitigate zero trade values and heteroskedasticity issues. Our analysis provides new empirical evidence on significant net trade creation effects of 111% in intermediate goods exports due to EAEU formation. Our findings also highlight that a substantial share of the increase in intermediate goods exports originates from trade creation in final assembly exports while parts and components show net trade diversion effects. Further, a country-level analysis reveals that the trade effects of EAEU are heterogeneous across all the members, with Armenia and the Russian Federation benefiting the most and the Kyrgyz Republic benefiting the least from the EAEU formation. Our study has important policy implications on promoting production sharing in the Eurasian region and hence remains of interest to policymakers.

The Value-Added Effects of Exchange Rates on Global Trade

This study is an investigation of view about the gross, bilateral, and value-added trades adjusting to exchange rate and income within global value chains. Various difference between aggregate and value-added trade flows is introduced. We adopt the traditional trade models and test them using time-series analysis on value-added exports and imports. We find that currency depreciation has negative effects on gross exports in the US and Korea due to intermediate goods imports, but positive effects on value-added exports in Japan and Korea. On the other hand, currency appreciation has negative effects on gross imports in the US, China, Japan and Korea due to intermediate goods exports, but positive effects on value-added imports in Japan. All income effects are positive as we expect. Also, we find the similar effects of exchange rate on bilateral trade flows. On the whole, depreciation has negative effects on gross exports but positive effects on value-added exports while appreciation has negative effects on gross imports but positive effects on value-added imports. With this study, the main contribution is further evidence on the value-added trade analysis. Practical implications reducing uncertainty could be an important policy objective to achieve higher growth.
 
 Received: 23 October 2020 / Accepted: 16 December 2020 / Published: 17 January 2021

Глобальные цепочки создания стоимости в период пандемии COVID-19

The article discusses the status of Global Value Chains (GVCs) amid the COVID 19 pandemic and their influence on world economic development. Key aspects of the world economy and GVCs transformation in the context of the COVID 19 are studied. A brief overview of the economic literature and development of theoretical frameworks and concepts of Global Value Chains as well as globalisation and “slowbalisation” is provided. The article focuses on estimates of key indicators published by international bodies, such as the United Nations, UNCTAD, UNIDO, OECD, WTO, IMF and others. Various think tanks and other institutions such as World Economic Forum, European Central Bank, McKinsey Global Institute, Deloitte, NBER have been analyzing GVCs’ contribution to the transmission of the COVID 19 macroeconomic shocks across countries. A quantitative assessment of participation in GVCs for countries and regions based on available data in the Trade in Value Added (TiVA) database are discussed. Specific attention is paid to the key GVCs indicators, including exports of intermediate goods and foreign value added share of gross exports. Special attention is paid to the economic downturn in the United States and characteristics of GVCs involving enterprises located in Wuhan (China), which is very important to many global supply chains. Various kinds of long-term trends and structural changes are analyzed. It is noted that gross domestic product (GDP) of the USA in constant 2012 prices (ignoring inflation) fell in the second quarter of 2020 compared to the previous quarter by 31.7% but only 9.1% compared to the first quarter of 2020. It is concluded that improving supply chains’ recovery ability will be an important factor for restoring global economic activity in post-coronavirus times.

Spillover risk analysis of virtual water trade based on multi-regional input-output model -A case study

Massive amounts of water embodied in commodities are transferred via interregional trade which increase the water scarcity risk of exporting region. This study proposed an integrated evaluation framework for sectoral physical water use risks and virtual water flow risks in Northeast China. The initial water use risks for different sectors by provinces were first assessed based on sectoral physical water consumption. Then based on the multi-regional input-output (MRIO) model, a virtual water trade network was established, and simultaneously the virtual scarce water in sectoral export of intermediate goods and final goods were accounted to investigate the virtual water flow risks by sectors. Finally, interprovincial embodied scarce water transfers between Northeast China and the rest of China were mapped, and by grafting the concept of ‘spillover risk’ to the virtual water trade, we analyzed the spillover risk difference of virtual water trade between regions. The results showed that the sectors of Agriculture (Ag) and Other manufacturing (OM) presented the highest risk of water use while Nonmetal mining (NmM) belonged to the potential high-risk sectors of water use for Northeast China. The sectors exported more virtual scarce water in intermediate goods also exported more in the final goods; and the sector of Manufacture of food products and tobacco processing (FP) was the largest contributor to the large exporting virtual scarce water for Liaoning and Jilin while Ag in Heilongjiang province was the largest exporter. The cumulative spillover risk index from rest of China to Liaoning province through virtual water trade is the highest; and the main risk spilt provinces to Northeast China were Xinjiang, Jiangsu, Anhui and Hebei province. The proposed risk framework for water utilization and trade may help promote the redistribution of water resources and explore pathways for sustainable management of water resources.

Comments on Economic Integration and Network Trade: A Comparison of East Asia and the European Union

Prema-chandra Athukorala, Australian National University: This paper undertakes a comparative analysis of production networks in Europe and East Asia in the global context, with emphasis on determinants of export patterns and intra-regional linkages. The findings suggest that: exports of intermediate goods (used as a proxy for parts and components or “middle products” exchanged within production networks) are more sensitive to trade barriers than total goods exports; regionalization of production networks is primarily determined by greater sensitivity of intermediate goods trade cost associated with distance that overwhelms cost advantages arising from advances in transportation and communication technology; and the production network in these two regions are being guided by distinct factors with geographic distance and remoteness playing a more significant role in East Asia than in the EU. Overall, this is an interesting paper on an important subject. However, I would like to suggest that the authors pay attention to the following methodological imitations in their further research.Trade within global production networks (“network trade”) is based on “global production sharing”—breakup of the production process of a given product into vertically separated stages/tasks carried out in several countries. Therefore, network trade essentially has two components: trade in parts and components (involving the “middle layer” of the production process) and trade in final assembly (Jones and Kierzkowski 2001; Obashi and Kimura 2018). The empirical analysis of this paper uses “intermediate goods” (delineated using the UN Broad Economic Classification Broad Economic Categories [BEC] at the 3-digit level of commodity classification) rather than parts and components and completely ignore final assembly.BEC-based intermediate goods include both parts and components and the standard intermediate goods such as iron and steel, industrial chemicals, and metal products. These two categories of intermediate goods have different characteristics as traded goods. Unlike standard intermediate goods, which are normally traded based on market-determined prices, trade in parts and components are mostly characterized by “relationship specificity” among the user firms (Athukorala and Khan 2016). Therefore, the former is not a good proxy for latter. In addition, data relating to intermediate goods (based on the BEC classification) significantly overstate the magnitude of bilateral trade links within global production networks of resource-rich countries, such as Malaysia and Indonesia.According to my calculations, final assembly accounts for 53.2 percent of total world network exports in 2006–07 (two-year average) (Athukorala 2014). More importantly, this share varies notably among countries: For instance, final assembly bulks large in network exports from China because it is the world's finally assembly center, where as parts and components (mostly exported to China) account for much of networks exports from the other countries in the region. Given this fundamental structural feature of production sharing, ignoring final assembly significantly underestimate the relative importance of network trade in global manufacturing but also the underestimation bias varies significantly among countries, giving rise to a bid problem in econometric analyzing of trade patterns using multi-country data, as has been done in this paper.I believe that the finding of this paper relating to regional rather than global integration of East Asian production networks is a statistical artefact resulting from the omission of final assembly from the commodity coverage of network trade. China accounts for more than half of final assembly exports from the region and more than 70 percent of these exports are to markets in North America, Europe, and the rest of the world. If network trade is measured appropriately, capturing both parts and components and final assembly, you will find a China-centered global (rather than regional) production network in Asia. The other Asian countries export parts and components to China, and China exports final assembly largely to the rest of the world.The empirical analysis of the paper is a direct application of the gravity equation specified by Anderson and van Wincoop (2003) to analyze determinants of “total” trade flows. No attempt has been made here to modify it to suit analyzing trade flows within global production networks informed by the theory of global production sharing (Jones 2000; Jones and Kirzkowski 2001; and many other papers). The “missing prince from Hamlet” is the “lead firm” (multinational enterprise [MNE]). There is no variable in the model to capture the pivotal role of MNEs within production networks. The standard variable used for this purpose is foreign direct investment. The production location decision of the lead firm is determined by the “relative cost” (mostly relative wages) among countries and the “service link cost” associated with undertaking different tasks of the production process and smoothly linking/coordinating these tasks. There is no relative cost variable in the model. I think per capital gross national income is a reasonably good proxy, if data on manufacturing wages are not available. Inclusion of most of the other variables (distance, remoteness, colonial links, RTAs, common language) can be theoretically justified as capturing “service link cost.”

Economic Integration and Network Trade: A Comparison of East Asia and the European Union

The emergence of production networks has changed the structure of international trade, which is characterized by a large share of intra-regional trade flows and a rising value of intermediate goods trade or network trade between countries within the same region. This paper investigates the change in impact of trade determinants with the formation of regional production networks. At the global level, the results show that intermediate goods exports are more sensitive to trade barriers than total goods exports. At the regional level, the comparison reveals that, despite the efforts directed toward export market diversification in East Asia, the region is still more dependent on other regions’ economic conditions than the European Union is.

Examining the Role of Policy and Cultural Determinants on Sectoral Export Competitiveness: Evidences from India

Exports are affected by several economic, political, social and cultural determinants. The objective of this study is to examine the role of policy and cultural determinants on export competitiveness for different sectors, estimate the technical efficiency (TE) and suggest focus areas to improve exports. The study uses the method of stochastic frontier analysis on the bilateral trade of India over the period 2000–2016. The result findings highlight that there is underutilization and ambiguous effect of trade agreements for all sectors except intermediate goods (IGs). Foreign direct investments outflow has positive results for all the sectors with capital goods getting benefitted the most. TE of exports shows positive trends for IGs, negative trend for raw materials, and mixed trend for consumer goods and capital goods sectors. IGs show the best export competitiveness, whereas RMs have the highest export potential. The results underline India’s progress in integrating with the global supply chain through increasing TE in exports of IGs.