Dumping Potential and Intensity : A Case Study of Indo-Myanmar Border Trade

The wave of globalization had started winding since the late 1980's in many countries of the world. This led to a structural change in different sectors of economy in different parts of the world. One of such sectors is external sector which was kept closed for many years. It is now open in the globalized economy. Many countries have adopted export as engine for economic growth, and, import as to acquire technological know-how and capital goods for promoting export sector. India's economy which was under the License Raj for almost four decades, however, by the turn of 1990s, India started to adopt the new wave of globalization. As a part of project globalization, India adopted “Look East Policy” to open up its economy to those neighboring South East Asian countries. Under this policy, India signed the Indo-Myanmar Border Trade agreement on 21st January, 1994 with Myanmar in view of the needs and demand of the people of the North East India. However, border trade along the Indo-Myanmar border has been being witnessed trading of both formal and informal goods simultaneously. Therefore, this paper examines exclusively the items under informal trade; the institutional factors behind this informal trade; and also to study commodity wise dumping potential which induce such tendency for informal trade and dumping intensity