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Assessing the Barriers to Trade in Services in South Asia

Author

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  • Arindam Banik

    (Arindam Banik is Professor at International Management Institute, B-10, Qutab Institutional, Area, Tara Crescent, New Delhi, 110 016, India. E-mail: banik.arindam@gmail.com)

  • Pradip K. Bhaumik

    (Pradip K. Bhaumik is Professor at International Management Institute (IMI), B-10, Qutab, Institutional Area, Tara Crescent, New Delhi 110 016, India. E-mail: pkbhaumik@imi.edu)

Abstract

This study aims to assess barriers to service trade in the education, health, telecom, transport, travel and tourism, and banking and insurance sectors of selected South Asian economies such as India, Sri Lanka, Pakistan, Nepal and Bangladesh, including both trade and domestic restrictions. The analysis is focused on the computation of aggregate and modal service trade restrictiveness indices (STRIs) by sector, drawing on information gathered based on detailed questionnaires. The conclusions highlight that while significant regulatory reforms have taken place in certain (for example Telecom) service sectors over the last decade, a broad range of restrictions still remain. The most significant change in these service sectors has been the lifting or softening of the constraints imposed on foreign equity participation. Interestingly, the economies in terms of regulatory reforms are more open to non-South Asian economies and not so much open to each other. However, reforms have had varying degrees of impact on market structure depending on the country and the sector.

Suggested Citation

  • Arindam Banik & Pradip K. Bhaumik, 2014. "Assessing the Barriers to Trade in Services in South Asia," Global Business Review, International Management Institute, vol. 15(4), pages 795-814, December.
    • Handle: RePEc:sae:globus:v:15:y:2014:i:4:p:795-814
    DOI: 10.1177/0972150914543239
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    References listed on IDEAS

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    1. Arindam Banik & Pradip K. Bhaumik, 2006. "Foreign Capital Inflows to China, India and the Caribbean," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-80077-9.
    2. Nora Dihel & Ben Shepherd, 2007. "Modal Estimates of Services Barriers," OECD Trade Policy Papers 51, OECD Publishing.
    3. Pradip K. Bhaumik & Arindam Banik, 2006. "FDI, Skilled Labour and the Caribbean's Emerging Competitive Disadvantage," Global Business Review, International Management Institute, vol. 7(2), pages 175-193, August.
    4. Mattoo, Aaditya, 1998. "Financial services and the WTO: Liberalization in the developing and transition economies," WTO Staff Working Papers TISD-98-03, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. Arindam Banik & Pradip K. Bhaumik, 2006. "Foreign Investment: The Caribbean," Palgrave Macmillan Books, in: Foreign Capital Inflows to China, India and the Caribbean, chapter 6, pages 116-146, Palgrave Macmillan.
    6. Mohamed Ali Marouani & Laura Munro, 2009. "Assessing Barriers to Trade in Services in The MENA Region," Working Papers 496, Economic Research Forum, revised Jul 2009.
    7. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2000. "Computational Analysis of the Accession of Chile to the NAFTA and Western Hemisphere Integration," The World Economy, Wiley Blackwell, vol. 23(2), pages 145-174, February.
    8. Mattoo, Aaditya & Rathindran, Randeep, 2006. "Measuring Services Trade Liberalization and Its Impact on Economic Growth: An Illustration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 64-98.
    9. Hoekman, Bernard & Mattoo, Aaditya, 2008. "Services trade and growth," Policy Research Working Paper Series 4461, The World Bank.
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    11. Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Publishing.
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    Cited by:

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    2. Devarakonda, S. & Chittineni, J., 2019. "Does Insurance Promote Economic Growth? Evidence from BRICS Countries," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(3), pages 135-146, September.
    3. Suresh Singh, 2017. "Rise of Born Globals and Their Association with High Technology Intensity or Services Sector— Myths or Reality?," Global Business Review, International Management Institute, vol. 18(6), pages 1424-1434, December.
    4. Hadi Al-Abrrow & Jaber Ali & Alhamzah Alnoor, 2022. "Multilevel Influence of Routine Redesigning, Legitimacy and Functional Affordance on Sustainability Accounting: Mediating Role of Organizational Sense-making," Global Business Review, International Management Institute, vol. 23(2), pages 287-312, April.
    5. Rabia Khatun, 2016. "Relation between Trade in Financial Services and Economic Growth in BRICS Economies: Cointegration and Causality Approach," Global Business Review, International Management Institute, vol. 17(1), pages 214-225, February.
    6. Deepraj Mukherjee, 2018. "Corruption in International Business: Does Economic Globalization Help?," Global Business Review, International Management Institute, vol. 19(3), pages 623-634, June.

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