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Deepening Intraregional Trade and Investment in South Asia - The Case of the Textiles and Clothing Industry

Author

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  • Meenu Tewari

    (Indian Council for Research on International Economic Relations)

Abstract

This paper draws on recent field work within South Asia and an extensive review of secondary data to examine the dynamics of cross border trade and investment in South Asia, exploring the potential for, and obstacles to, such trade through the lens of a sector that is salient throughout South Asia : Textiles and Clothing. Despite the growing competitiveness of this sector in the SAARC region, there is very little regional interlinkage within South Asias textile and clothing industry. Currently less than 4% of SAARCs global T&C exports are traded within the region. There is growing evidence of widespread substitution of South Asia by East Asia as the sourcing hub of fabric and accessories by the regions major clothing exporters. Over 80% of the fabric needs of Bangladesh and Sri Lanka, for example, come from outside the region even though India and Pakistan are net exporters of textiles.

Suggested Citation

  • Meenu Tewari, 2008. "Deepening Intraregional Trade and Investment in South Asia - The Case of the Textiles and Clothing Industry," Trade Working Papers 22265, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:tradew:22265
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    File URL: http://www.eaber.org/node/22265
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    2. Meenu Tewari, 2006. "Adjustment in India's Textile and Apparel Industry: Reworking Historical Legacies in a Post-MFA World," Environment and Planning A, , vol. 38(12), pages 2325-2344, December.
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    Cited by:

    1. Sungsup Ra & Brian Chin & Amy Liu, 2017. "Challenges and Opportunities for Skills Development in Asia: Changing Supply, Demand, and Mismatches," Working Papers id:11838, eSocialSciences.
    2. Prema-chandra Athukorala, 2013. "Intra-Regional FDI and Economic Integration in South Asia: Trends, Patterns and Prospects," Departmental Working Papers 2013-05, The Australian National University, Arndt-Corden Department of Economics.
    3. Cornelia Staritz, 2011. "Making the Cut? Low-Income Countries and the Global Clothing Value Chain in a Post-Quota and Post-Crisis World," World Bank Publications, The World Bank, number 2547.
    4. Savchenko, Yevgeniya & Acevedo, Gladys Lopez, 2012. "Female wages in the apparel industry post-MFA : the cases of Cambodia and Sri Lanka," Policy Research Working Paper Series 6061, The World Bank.
    5. World Bank, 2012. "Consolidating and Accelerating Exports in Bangladesh : A Policy Agenda," World Bank Other Operational Studies 11911, The World Bank.
    6. Suparna Karmakar, 2014. "Protecting indigenous knowledge through geographical indications: a case study of the textile industry in India," Chapters,in: Intellectual Property for Economic Development, chapter 5, pages 120-138 Edward Elgar Publishing.

    More about this item

    Keywords

    South Asia; trade; investment; Textile and clothing; regional cooperation;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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