IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Sri Lankan Integration into Indian Supply Chains under the Bilateral Free Trade Agreement

Listed author(s):
Registered author(s):

    Close economic ties and virtual 'free trade' between the small island economy of Sri Lanka and its growing big neighbor - India, appear to have created scope for the former to integrate into the supply chains of the latter. The paper is aimed at studying whether Sri Lanka has been integrating into the Indian manufacturing processes in line with emerging trade patterns based on 'global product sharing'. In spite of popular perceptions about the deeper integration of Sri Lanka into Indian supply chains, the study suggests that Indo-Lanka Free Trade Agreement (FTA) has not led to a breakthrough in the 'old style' trade integration between the two countries. While Sri Lanka's trade expansion under the FTA has brought about peculiar outcomes, the country's integration to Indian manufacturing processes has performed slowly and continued to remain weak. The specific policy issues related to Indo-Lanka FTA itself and to the bilateral trade expansion appear to have hindered their productsharing. Generally, trade and growth patterns in both Sri Lanka and India are different from the experience of East and Southeast Asian countries which created opportunities to accommodate the formation of globalized supply chains of fragmented manufacturing processes. The study draws out conclusions and inferences with policy relevance for bilateral trade, while notifying the danger of bilateral 'free trade' against rising protectionism.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: First version, 2013
    Download Restriction: no

    Paper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2013_05.

    in new window

    Length: 21 pages
    Date of creation: Apr 2013
    Handle: RePEc:iuj:wpaper:ems_2013_05
    Contact details of provider: Postal:
    777 Kokusai-cho, Minami Uonuma0-shi, Niigata 949-7277 JAPAN

    Phone: 81+(0)25-779-1112
    Fax: 81+(0)25-779-1187
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:iuj:wpaper:ems_2013_05. 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: (Kazumi Imai, Office of Academic Affairs)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.