CASA Trade: Identifying Regional Value Chain Recital and Dynamics

Central Asia and South Asia (CASA) are rewriting the economic trajectory by amplifying the value-added exports and creating more jobs. This pragmatic dynamism allowed CASA countries to be more competitive in financial transactions using the region’s natural resource endowments. The conventional methodology approach based on revealed comparative advantage (RCA) estimates involves identifying regional value chains and gauging the country’s competitiveness in providing raw materials, furnishing commodities (semi-finished and finished) to the industry, thereby helping to indicate whether economies specialise in low-, middle-, or high-tech sectors. These products provide a significant potential for the region to establish regional value chains and enhance the value of its exports. The region now serves as the predominant supplier of fundamental raw materials globally, although it exports them with little value enhancement. This research outlines potential regional value chains for CASA, which could establish goods based on UNIDO and OECD trade categories. This research analyses the evolving patterns of intraregional and global commerce within CASA, emphasising the significance of both interregional and intraregional trade. The inputs and outputs are delineated, and their evolving global and intraregional tendencies are emphasised. RVCs differ from global value chains in that a nation within the area exports the final product, either globally or regionally. RVCs provide regional nations the opportunity to ascend value chains by enhancing their competitiveness and producing and exporting higher value-added goods. Established RVCs in CASA may provide regional nations with the possibility to effectively connect with GVCs and enhance their negotiating leverage with lead companies. This chapter uses an economic analysis to look at the pros and cons of trade within and between regions. It focuses on regional value chains (RVCs) in CASA and sorts them into groups based on complexity and competitiveness. The value chain analysis (VCA) ascertains the evolution of trade patterns, governing agreements, facilitation and the costs associated with enhancing global and regional value chains (G&RVC).