This dissertation addresses specific issues on domestic and foreign trade in India. The three chapters of the dissertation are summarized as follows. In the first chapter, we analyze the existence of regional wage differences across Indian states, and how domestic trade affects those premiums. We follow a two-step estimation process used in the literature on Labor Economics. Our empirical results show that higher level of domestic imports tends to reduce the state premiums, and higher domestic exports increase those premiums, which is consistent with a specific factor Ricardo-Viner model. Thus, promoting domestic trade by with states specializing in certain industries may lead to higher welfare within the country. In addition, we find, state premiums depend negatively on state-level amenities measured by per-capita power availability, and does not depend on the richness of the State measured by per-capita Net State Domestic Product. In the second chapter, we look at the pattern and determinants of inter-state manufacturing trade in India. In the paper, we use information on 12 manufacturing industries categorized under 5 sectors from 2005 to 2013 with two-year intervals in between. We find that a 1\% decrease in income ratio between importing state net state domestic product and exporting state net domestic product has significantly varying effects on trade flows across the different sectors. For coal and minerals, the effect is 36.8%, for chemical it is 105%, for metals it is 31.5% and for cement, it is 36.8%. In all these case a decrease in income ratio increases exports. For machinery, a 1% decrease in income ratio lead to approximately 9.3% reduction in trade. This suggests that machineries which are capital goods are more imported by richer states, whereas the other goods which can be classified as intermediate inputs are more imported by poorer states. We also find that infrastructure promotes trade and on average infrastructure reduces the effect of contiguity by around 28.6% and promotes trade even between non-contiguous states. Therefore, infrastructure in the form of roadways, highways, and railways must be built and maintained to promote facilitate trade in India. In chapter three, we compare the effects of tariffs and non-tariff barriers on Indian exports. We use Indian HS-96 four-digit industry level export data from COMTRADE and tariff data from TRAINS database for the study. The overall result suggests that input tariffs have the largest effect on exports, followed by final tariff and foreign tariffs. A 1% reduction in input tariff leads to around 8.6% increase in exports. A similar reduction in final tariffs and foreign tariffs lead to 3.6% and 2.8% increase, respectively in exports. Thus, we conclude that the supply side effect of exports dominates the demand side effects. From a policy perspective, if countries try to improve trade balance by imposing high tariffs, it may lead to a negative effect on exports through the input tariff effects.

nÃo hà / Teorias em Economia Internacional sÃo desenvolvidas e testadas empiricamente, esta tese pretende contribuir com algumas delas. Inicialmente, dever-se-à abordar a chamada teoria de Cones de DiversificaÃÃo. Para tanto, o primeiro capÃtulo propÃe-se a separar em dois cones os estados do Brasil que apresentam semelhanÃas nas dotaÃÃes de fatores. Isto serà realizado atravÃs de um modelo economÃtrico SUR para dezoito indÃstrias de transformaÃÃo e duas amostras anuais, em 1997 e 2007. DiferenÃas salariais entre os cones tambÃm serÃo medidas com a mesma metodologia. A teoria de cones de diversificaÃÃo à revalidada uma vez que existe diferenciaÃÃo horizontal entre os produtos. O segundo capÃtulo elabora um modelo economÃtrico que delineia os efeitos da abertura comercial sobre os salÃrios dos trabalhadores pouco e altamente qualificados. Utilizou-se o arcabouÃo teÃrico da equaÃÃo minceriana para incorporar caracterÃsticas dos trabalhadores. Este trabalho objetiva analisar se, dada maior abertura comercial, bem como outros fatores relevantes, tais quais; experiÃncia, anos de estudo, intensidade tecnolÃgica do setor ao qual se emprega e quantidade de horas trabalhadas, houve aumento da renda do trabalhador industrial dos estados do Nordeste do Brasil para os anos da amostra. Adicionalmente, uma dummy à inserida no modelo com o objetivo de diferenciar os trabalhadores empregados nos setores de alta e baixa tecnologia. Encontram-se evidÃncias de que volume de exportaÃÃes, horas de trabalho, anos de estudo e experiÃncia impactaram positivamente no retorno do trabalhador. Maior abertura comercial apresenta grande influÃncia positiva sobre os salÃrios dos trabalhadores das indÃstrias analisadas. O Ãltimo capÃtulo apresenta um modelo gravitacional que serà aplicado a fim de estudar os determinantes do fluxo comercial entre o Estado do Cearà e os demais estados brasileiros. Este capÃtulo dirigiu sua atenÃÃo aos fatores que influenciam o fluxo de comÃrcio do Estado do Cearà para os demais estados do Brasil. Entre estes fatores, apontou-se inicialmente o espaÃo que separa os centros produtivos como um fator que atua influenciando negativamente o comÃrcio. Ainda, analisou-se o impacto das variÃveis Produto Interno Bruto e tamanho populacional, encontra-se que ambas exercem impacto positivo para o fluxo comercial. / Theories in International Trade are developed and empirically tested. This thesis aims to contribute with some of them. Initially, it will address the so-called Theory of Diversification Cones. Thus, the first chapter proposes to separate Brazilian states into two cones which have similarities in factor endowments. This will be accomplished through an SUR econometric model with eighteen manufacturing industries and two annual samples, in 1997 and 2007. Wage differences between the cones will also be measured with the same methodology. The Theory of Diversifiation Cones is renewed since there is horizontal differentiation between products. The second chapter develops an econometric model that outlines the effects of trade liberalization on wages of low and high-skilled workers. We used the theoretical framework of the Mincerian equation to incorporate characteristics of workers. This study aims to examine whether, given greater trade openness as well as other relevant factors, such that; experience, years of education, technological intensity of the sector to which it is used and the amount of hours worked, an increase in income of the industrial worker in the states of Northeast Brazil for the years of the sample. In addition, a dummy is inserted into the model with the aim to differentiate the workers employed in low and high-tech industries. There are evidences that export volume, hours, years of study and experience have a positive impact on the worker's return. Greater trade openness has a large positive influence on the wages of workers in industries analyzed. The final chapter presents a gravity model which will be applied for the purpose of studying the determinants of trade flows between the State of Cearà and other Brazilian states. This chapter turned its attention to the factors that influence the trade flow in the State of Cearà in other states of Brazil. Among these factors, the separation between the production centers was initially pointed as a factor that acts negatively influencing trade. The impact of the variables GDP and population size was also analyzed, and it was expected that both of them exert positive impact on trade flows.