Impact of Trade War on Developing Countries: A Case Study of India

Abstract

In macroeconomics, the term recession is defined as a significant decadence in ordinary economic activity in a designated region. There are so many economic theories attempted to explain why and how the economy might fall off of its long-term growth trend and in to a period of short-term recession. Economists say there have been 33 recession in the United States since 1854 through 2018 in total. Since 1980, there have been four such periods of negative economic growth that were considered recession in the wake of the 2008 financial crisis and the Great Depression of the 1930s. Production and flows of goods are directly influenced by the tariff; uses input–output analysis to estimate indirect effects on gross domestic product, exports and employment; and allows redirection of trade toward other producers. The ongoing trade war with similar trade conflicts in history, we reveal three major causes, with varying degrees of importance from both economic and political perspectives.

Citation

Shah, F.A., Yadav, S.S. and Satsangi, A.K. (2021), "Impact of Trade War on Developing Countries: A Case Study of India", Das, R.C. (Ed.) Global Tariff War: Economic, Political and Social Implications, Emerald Publishing Limited, Leeds, pp. 217-228. https://doi.org/10.1108/978-1-80071-314-720211017