Intra-Regional FDI and Economic Integration in South Asia: Trends, Patterns and Prospects
This paper examines trends and patterns of intra-regional FDI in South Asia, with a focus on the potential for integrating production processes among countries in the region through further trade and investment policy reforms. The empirical evidence pieced together from scattered sources suggests that horizontal (market seeking) FDI has continued to dominate South Asian intra-regional FDI, with a significant shift in recent years in favour of services sector activities. Vertical (efficiency seeking) FDI in the region has remained confined to a few product lines, predominately garments, and also a few industries in which the availability of specific natural resources plays an important role in the site selection decisions of firms. In other industries, including electronics and electrical goods in which global production sharing is heavily concentrated, there is no evidence of notable cross-border operations by regional firms. The limited achievement so far in fostering cross-border production sharing through vertical FDI has been the outcome of unilateral, rather than region-wide, trade and investment policy reforms.
|Date of creation:||2013|
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Working Paper Series
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- 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.
- Meenu Tewari, 2006. "Adjustment in India’s textile and apparel industry: reworking historical legacies in a post-MFA world," Environment and Planning A, Pion Ltd, London, vol. 38(12), pages 2325-2344, December.
- Maurice Schiff & L. Alan Winters, 2003. "Regional Integration and Development," World Bank Publications, The World Bank, number 15172, July. Full references (including those not matched with items on IDEAS)
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