This paper found the electric power exporting economy would be better off developing its manufacturing sector to diversify its exposure and to protect its trade interests.
The case of Bhutanese hydro-electricity exports to India is studied and the change in trade advantage with every increase in power tariff is ascertained.
While the causality from electric power tariff to Indian manufactures prices is not established statistically, a change in manufactures prices feeding back into consumer prices in Bhutanis statistically significant.