Regional Economic Integration and FDI in South Asia - Prospects and Problems
The slow progress and modest achievements of regional integration in South Asia have generated a huge amount of skepticism about its role as an effective strategy of growth. The present study, however, argues that there is need to forge deeper integration within the region. It examines the prospects and problems of serious fiscal consolidation within the area. Essentially, it looks at the effect of deepened regionalism on investment flows. It argues that regional integration has the potential to promote intra and extra regional FDI flows and economic development in individual countries of the region. This will pave the way for the most efficient use of the region's resources through additional economies of scale, value addition, employment and diffusion of technology. A number of challenges remain. Structural weaknesses, institutional bottlenecks, political movements, narrow nationalism and mutual mistrust are some of the factors that explain the failure of the region to exploit possibilities. Paradoxically, the problems themselves provide strong motivation for strengthening cooperation. It is only through more intensive collaboration that these complexities can be addressed and resolved.
|Date of creation:||Jan 2008|
|Date of revision:|
|Contact details of provider:|| Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200|
Web page: http://www.eaber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Brenton & Francesca Di Mauro & Matthias LÃ¼cke, 1999.
"Economic Integration and FDI: An Empirical Analysis of Foreign Investment in the EU and in Central and Eastern Europe,"
Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 26(2), pages 95-121, June.
- Brenton, Paul & DiMauro, Francesca & Lücke, Matthias, 1998. "Economic integration and FDI: an empirical analysis of foreign investment in the EU and in Central and Eastern Europe," Kiel Working Papers 890, Kiel Institute for the World Economy (IfW).
- Brenton, Paul & DiMauro, Francesca & Lücke, Matthias, 1998. "Economic integration and FDI: an empirical analysis of foreign investment in the EU and in Central and Eastern Europe," Kiel Working Papers 890, Kiel Institute for the World Economy.
- Dunning, John H, 1979. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 269-95, November.
- Nam Jeon , Bang & F. Stone , Susan, 2000. "Foreign Direct Investment and Trade in the Asia-Pacific Region: Complementarity, Distance and Regional Economic Integration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 15, pages 460-485.
- Magnus Blomstrom & Ari Kokko, 1997.
"Regional Integration and Foreign Direct Investment,"
NBER Working Papers
6019, National Bureau of Economic Research, Inc.
- Blomström, Magnus & Kokko, Ari, 1997. "Regional Integration and Foreign Direct Investment," CEPR Discussion Papers 1659, C.E.P.R. Discussion Papers.
- Blomström, Magnus & Kokko, Ari, 1997. "Regional Integration and Foreign Direct Investment," SSE/EFI Working Paper Series in Economics and Finance 172, Stockholm School of Economics.
- repec:sae:niesru:v:160:y::i:1:p:87-99 is not listed on IDEAS
- Tendulkar, Suresh D. & Bhavani,, 2007. "Understanding Reforms: Post 1991 India," OUP Catalogue, Oxford University Press, number 9780195687118, December.
- Badi H. Baltagi & Peter Egger & Michael Pfaffermayr, 2005.
"Estimating Models of Complex FDI: Are There Third-Country Effects?,"
Center for Policy Research Working Papers
73, Center for Policy Research, Maxwell School, Syracuse University.
- Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2007. "Estimating models of complex FDI: Are there third-country effects?," Journal of Econometrics, Elsevier, vol. 140(1), pages 260-281, September.
- Philippa Dee & Jyothi Gali, 2005.
"The Trade and Investment Effects of Preferential Trading Arrangements,"
in: International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, pages 133-176
National Bureau of Economic Research, Inc.
- Philippa Dee & Jyothi Gali, 2003. "The Trade and Investment Effects of Preferential Trading Arrangements," NBER Working Papers 10160, National Bureau of Economic Research, Inc.
- John H. Dunning, 1997. "The European Internal Market Programme and Inbound Foreign Direct Investment," Journal of Common Market Studies, Wiley Blackwell, vol. 35(1), pages 1-30, 03.
- Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995.
"How Does Foreign Direct Investment Affect Economic Growth?,"
NBER Working Papers
5057, National Bureau of Economic Research, Inc.
- Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
- Andreas Waldkirch, 2003. "The 'new regionalism' and foreign direct investment: the case of Mexico," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 12(2), pages 151-184.
- Eduardo Levy Yeyati & Christian Daude & Ernesto Stein, 2003.
"Regional Integration and the Location of FDI,"
Business School Working Papers
doce, Universidad Torcuato Di Tella.
- Sachin Chaturvedi, 2007. "Trade Facilitation Measures in South Asian FTAs : An Overview of Initiatives and Policy Approaches," Trade Working Papers 22091, East Asian Bureau of Economic Research.
- V.N. Balasubramanyam & David Greenaway, 1992. "Economic Integration and Foreign Direct Investment: Japanese Investment in the EC," Journal of Common Market Studies, Wiley Blackwell, vol. 30(2), pages 175-194, 06.
- Sachin Chaturvedi, 2007. "Trade Facilitation Measures in South Asian FTAs: An Overview of Initiatives and Policy Approaches," Working Papers 2807, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
- Medvedev, Denis, 2006.
"Preferential trade agreements and their role in world trade,"
Policy Research Working Paper Series
4038, The World Bank.
- Denis Medvedev, 2010. "Preferential trade agreements and their role in world trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(2), pages 199-222, June.
- Haider A. Khan & Zulfiqar Larik, 2007. "Globalization and Regional Co-operation in South Asia: A Political and Social Economy Approach," CIRJE F-Series CIRJE-F-480, CIRJE, Faculty of Economics, University of Tokyo.
- Saman Kelegama & Indra Nath Mukherji, 2007. "India-Sri Lanka Bilateral Free Trade Agreement : Six Years Performance and Beyond," Trade Working Papers 22104, East Asian Bureau of Economic Research.
- Molly Lesher & Sébastien Miroudot, 2006. "Analysis of the Economic Impact of Investment Provisions in Regional Trade Agreements," OECD Trade Policy Papers 36, OECD Publishing.
- John H. Dunning, 1997. "The European Internal Market Programme and Inbound Foreign Direct Investment," Journal of Common Market Studies, Wiley Blackwell, vol. 35(2), pages 189-223, 06.
- Barrell, Ray & Pain, Nigel, 1999. "Trade restraints and Japanese direct investment flows," European Economic Review, Elsevier, vol. 43(1), pages 29-45, January.
- World Bank, 2005. "Global Economic Prospects 2005 : Trade, Regionalism and Development," World Bank Publications, The World Bank, number 14783.
When requesting a correction, please mention this item's handle: RePEc:eab:macroe:22141. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong)
If references are entirely missing, you can add them using this form.