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Assessing the Experience of South Asia–East Asia Integration and India’s Role

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  • Wignaraja, Ganeshan

    (Asian Development Bank Institute)

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    Abstract

    This paper examines the gains for South Asian economies from integrating with East Asia and India’s role in this process. Evidence of increased pan-Asian integration exists but the process is uneven. Bilateral trade has grown. As have bilateral foreign direct investment flows and free trade agreements (FTAs), albeit at a slower pace than trade. The integration process has been led by India and Pakistan with limited participation of smaller South Asian economies. Tackling key impediments in cross-border infrastructure, FTAs, trade barriers and business regulations, and barriers to services will foster further integration. Computable general equilibrium (CGE) simulations suggest that a South Asia–East Asia FTA offers the most gains for South Asia and that India has an incentive to include its neighbors in such an arrangement rather than going it alone with East Asia. The rest of South Asia will gain by deepening South Asian integration and fostering ties with East Asia.

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    File URL: http://www.adbi.org/files/2014.02.25.wp465.experience.south.asia.east.asia.integration.india.pdf
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    Bibliographic Info

    Paper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 465.

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    Length: 30 pages
    Date of creation: 25 Feb 2014
    Date of revision:
    Handle: RePEc:ris:adbiwp:0465

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    Keywords: pan-asian economic integration; south asia-east asia trade; infrastructure; reforms; free trade agreements;

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    1. Inkyo Cheong & Jose Tongzon, 2013. "Comparing the Economic Impact of the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership," Asian Economic Papers, MIT Press, vol. 12(2), pages 144-164, June.
    2. Marcus Noland & Donghyun Park & Gemma B. Estrada, 2012. "Developing the Services Sector as Engine of Growth for Asia: An Overview," Working Paper Series WP12-18, Peterson Institute for International Economics.
    3. Maurice Schiff & L. Alan Winters, 2003. "Regional Integration and Development," World Bank Publications, The World Bank, number 15172, October.
    4. Siow Yue Chia, 2013. "The Emerging Regional Economic Integration Architecture in East Asia," Asian Economic Papers, MIT Press, vol. 12(1), pages 1-37, March.
    5. S.K. Mohanty & Sanjib Pohit, 2007. "Welfare Gains from Regional Economic Integration in Asia : ASEAN+3 or EAS," Macroeconomics Working Papers 22121, East Asian Bureau of Economic Research.
    6. repec:tpr:asiaec:v:12:y:2013:i:2:p:1-37 is not listed on IDEAS
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