Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Chandrima Sikdar ¹, Debesh Chakraborty ²

Affiliations
1 School of Business Management, Narsee Monjee Institute of Management Studies, V.L. Mehta Road, Ville Parle (W), Mumbai 400056, Maharashtra, IN
2 Department of Economics, Jadavpur University, Kolkata 700032, West Bengal, IN

Abstract

The paper attempts to study the factor content of bilateral trade between the two developing countries of India and Sri Lanka. Given instances of production sharing between them and the extent of input trade that they engage in globally, it is only appropriate to use a framework which takes into account all these features. It uses the framework of Remier (2006) and Trefler and Zhu (2010) to find out if trade between them provides evidence of Hecksher-Ohlin pattern of trade. Results of the study provide evidence to support Leontief paradox with respect to this bilateral trade.

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