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Regional Integration and Trade Cost in South Asia

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Author Info

  • Nilankan Banik
  • John Gilbert

Abstract

Until now, amount of inter-country trade within South Asian nations have been low. While similarities in exports profile can be seen as a reason for this low value of trade it might not be a valid one, especially in presence of growing South Asian income. Intra-industry trade theory suggests that complementarity might actually increase trade in presence of a rising income. There can be other important factors, such as, trade costs. Using an augmented gravity model in a panel framework the authors try to identify the components of trade costs that might have resulted in lower inter-country South Asian trade. This paper was prepared for the Latin America/Caribbean and Asia/Pacific Economics and Business Association (LAEBA)'s 4th Annual Meeting held in Lima, Peru, on June 17, 2008.

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Bibliographic Info

Paper provided by Inter-American Development Bank in its series IDB Publications with number 48978.

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Date of creation: Jun 2008
Date of revision:
Handle: RePEc:idb:brikps:48978

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Related research

Keywords: Integration & Trade; Regional Integration; Trade Cost; South Asia; Gravity model; Fourth LAEBA Annual Meeting;

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Cited by:
  1. Vaqar, Ahmed & Ghulam, Samad, 2011. "Trade facilitation for economic corridors in South Asia: the perspective of Pakistan," MPRA Paper 31368, University Library of Munich, Germany.
  2. De, Prabir & Raihan, Selim & Kathuria, Sanjay, 2012. "Unlocking Bangladesh-India trade : emerging potential and the way forward," Policy Research Working Paper Series 6155, The World Bank.
  3. Mr Hasanuzzaman & Zeeshaan Rahman, 2010. "Bangladesh and Regional Connectivity : Best Practices from Global Experiences," Trade Working Papers 23061, East Asian Bureau of Economic Research.

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