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Political Economy of Regional Trading Arrangements in South Asia

Author

Listed:
  • K. Shrestha, Hemanta

    (AT&T Corporation)

  • P. Upadhyay, Mukti

    (Eastern Illinois University)

Abstract

We examine how the factors conventionally found important for trade in other regions of the world influence trade in South Asia. Our gravity model starts by estimating the effects of economic variables such as per capita income and the size of economies on bilateral trade. We then use a novel dataset by extending the model to evaluate the role of non-economic factors such as geography, political cooperation and cultural similarity among nations. We find that the positive effects of incomes and cultural similarity on trade are largely neutralized by adverse political developments that repress trade within the region.

Suggested Citation

  • K. Shrestha, Hemanta & P. Upadhyay, Mukti, 2004. "Political Economy of Regional Trading Arrangements in South Asia," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 427-446.
    • Handle: RePEc:ris:integr:0293
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    Cited by:

    1. Lahiri, Bidisha & Masjidi, Feroz K., 2012. "Landlocked Countries: A Way to Integrate with Coastal Economies," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 27, pages 505-519.

    More about this item

    Keywords

    regional trading arrangements; political model; South Asia; gravity model;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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