IDEAS home Printed from https://ideas.repec.org/p/ris/adbiwp/0465.html
   My bibliography  Save this paper

Assessing the Experience of South Asia–East Asia Integration and India’s Role

Author

Listed:
  • Ganeshan Wignaraja

    (Asian Development Bank Institute)

Abstract

This paper examines the gains for South Asian economies from integrating with East Asia and India’s role in this process. Evidence of increased pan-Asian integration exists but the process is uneven. Bilateral trade has grown. As have bilateral foreign direct investment flows and free trade agreements (FTAs), albeit at a slower pace than trade. The integration process has been led by India and Pakistan with limited participation of smaller South Asian economies. Tackling key impediments in cross-border infrastructure, FTAs, trade barriers and business regulations, and barriers to services will foster further integration. Computable general equilibrium (CGE) simulations suggest that a South Asia–East Asia FTA offers the most gains for South Asia and that India has an incentive to include its neighbors in such an arrangement rather than going it alone with East Asia. The rest of South Asia will gain by deepening South Asian integration and fostering ties with East Asia.

Suggested Citation

  • Ganeshan Wignaraja, 2014. "Assessing the Experience of South Asia–East Asia Integration and India’s Role," ADBI Working Papers 465, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0465
    as

    Download full text from publisher

    File URL: http://www.adbi.org/files/2014.02.25.wp465.experience.south.asia.east.asia.integration.india.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:tpr:asiaec:v:12:y:2013:i:2:p:1-37 is not listed on IDEAS
    2. S.K. Mohanty & Sanjib Pohit, 2007. "Welfare Gains from Regional Economic Integration in Asia : ASEAN+3 or EAS," Macroeconomics Working Papers 22121, East Asian Bureau of Economic Research.
    3. Robert Scollay & Annette Pelkmans-Balaoing, 2009. "Current Patterns of Trade and Investment," Palgrave Macmillan Books, in: Joseph Francois & Pradumna B. Rana & Ganeshan Wignaraja (ed.), Pan-Asian Integration, chapter 2, pages 63-162, Palgrave Macmillan.
    4. Joseph Francois & Ganeshan Wignaraja, 2009. "Pan-Asian Integration: Economic Implications of Integration Scenarios," Palgrave Macmillan Books, in: Joseph Francois & Pradumna B. Rana & Ganeshan Wignaraja (ed.), Pan-Asian Integration, chapter 8, pages 487-536, Palgrave Macmillan.
    5. Noland, Marcus & Park, Donghyun & Estrada, Gemma B., 2012. "Developing the Service Sector as Engine of Growth for Asia: An Overview," ADB Economics Working Paper Series 320, Asian Development Bank.
    6. Srabani Roy Choudhury, 2009. "Japan’s Foreign Direct Investment Experiences in India : Lessons Learnt from Firm Level Surveys," Finance Working Papers 22910, East Asian Bureau of Economic Research.
    7. Maurice Schiff & L. Alan Winters, 2003. "Regional Integration and Development," World Bank Publications - Books, The World Bank Group, number 15172, April.
    8. John Arnold, 2009. "The Role of Transport Infrastructure, Logistics, and Trade Facilitation in Asian Trade," Palgrave Macmillan Books, in: Joseph Francois & Pradumna B. Rana & Ganeshan Wignaraja (ed.), Pan-Asian Integration, chapter 6, pages 351-437, Palgrave Macmillan.
    9. Kreinin, Mordechai E. & Plummer, Michael G. (ed.), 2012. "The Oxford Handbook of International Commercial Policy," OUP Catalogue, Oxford University Press, number 9780195378047, Decembrie.
    10. Inkyo Cheong & Jose Tongzon, 2013. "Comparing the Economic Impact of the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership," Asian Economic Papers, MIT Press, vol. 12(2), pages 144-164, Summer.
    11. Siow Yue Chia, 2013. "The Emerging Regional Economic Integration Architecture in East Asia," Asian Economic Papers, MIT Press, vol. 12(1), pages 1-37, Winter/Sp.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ganeshan Wignaraja, 2014. "Will South Asia Benefit from Pan-Asian Integration?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(2), pages 175-197, September.
    2. Masahiro Kawai & Ganeshan Wignaraja, 2014. "Policy challenges posed by Asian free trade agreements: a review of the evidence," Chapters, in: Richard Baldwin & Masahiro Kawai & Ganeshan Wignaraja (ed.), A World Trade Organization for the 21st Century, chapter 8, pages 182-238, Edward Elgar Publishing.
    3. Mitsuyo ANDO, 2009. "Impacts of FTAs in East Asia: CGE Simulation Analysis," Discussion papers 09037, Research Institute of Economy, Trade and Industry (RIETI).
    4. Ejaz Ghani & Musleh ud Din & Afia Malik, 2017. "An Assessment of Pakistan's Export Performance and the Way Forward," Working Papers id:12173, eSocialSciences.
    5. 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.
    6. Zakaria Sorgho, 2016. "RTAs' Proliferation and Trade-diversion Effects: Evidence of the ‘Spaghetti Bowl’ Phenomenon," The World Economy, Wiley Blackwell, vol. 39(2), pages 285-300, February.
    7. Gumilang, Howard & Mukhopadhyay, Kakali & Thomassin, Paul J., 2011. "Economic and environmental impacts of trade liberalization: The case of Indonesia," Economic Modelling, Elsevier, vol. 28(3), pages 1030-1041, May.
    8. Kaminski, Bartlomiej, 2006. "Bulgaria's institutions and policies : integrating into Pan-European markets," Policy Research Working Paper Series 3864, The World Bank.
    9. Anderson, Kym, 2004. "The Challenge of Reducing Subsidies and Trade Barriers," CEPR Discussion Papers 4592, C.E.P.R. Discussion Papers.
    10. Khadan, Jeetendra & Hosein, Roger, 2014. "Trade, Economic and Welfare impacts of the CARICOM-Canada Free Trade Agreement," MPRA Paper 54836, University Library of Munich, Germany.
    11. Scrieciu, Silviu Serban, 2004. "Assessing the Economic Impacts of Incorporating Romania's Agricultural and Food Sectors into EU's Customs Union: An Applied General Equilibrium Approach," Development Economics and Public Policy Working Papers 30543, University of Manchester, Institute for Development Policy and Management (IDPM).
    12. Husam Rjoub & Mehmet Aga & Ahmad Abu Alrub & Murad Bein, 2017. "Financial Reforms and Determinants of FDI: Evidence from Landlocked Countries in Sub-Saharan Africa," Economies, MDPI, vol. 5(1), pages 1-12, January.
    13. Peter W. Daniels & Pengfei Ni, 2014. "Urbanisation and changes in the sectoral structure of economic development: the scale of the manufacturing sector in Chinese cities and the shift towards service industry," Working Papers hal-00943972, HAL.
    14. repec:ilo:ilowps:374998 is not listed on IDEAS
    15. Hiro Lee & Dominique van der Mensbrugghe, 2007. "Regional Integration, Sectoral Adjustments and Natural Groupings in East Asia," OSIPP Discussion Paper 07E008, Osaka School of International Public Policy, Osaka University.
    16. Zorob, Anja, 2007. "The Potential of Regional Integration Agreements (RIAs) in Enhancing the Credibility of Reform: The Case of the Syrian-European Association Agreement," GIGA Working Papers 51, GIGA German Institute of Global and Area Studies.
    17. Amita Batra, 2010. "Asian Economic Integration ASEAN+3+1 or ASEAN+1s?," Working Papers id:2734, eSocialSciences.
    18. Leonardo Baccini, 2010. "Explaining formation and design of EU trade agreements: The role of transparency and flexibility," European Union Politics, , vol. 11(2), pages 195-217, June.
    19. Anna Maria Mayda & Chad Steinberg, 2009. "Do South-South trade agreements increase trade? Commodity-level evidence from COMESA," Canadian Journal of Economics, Canadian Economics Association, vol. 42(4), pages 1361-1389, November.
    20. Vicard, Vincent, 2012. "Trade, conflict, and political integration: Explaining the heterogeneity of regional trade agreements," European Economic Review, Elsevier, vol. 56(1), pages 54-71.
    21. Alessia Lo Turco, 2005. "South-South Trade Agreements, Location of Production and Inequality in Latin America," Ibero America Institute for Econ. Research (IAI) Discussion Papers 127, Ibero-America Institute for Economic Research.

    More about this item

    Keywords

    pan-asian economic integration; south asia-east asia trade; infrastructure; reforms; free trade agre;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:adbiwp:0465. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ADB Institute (email available below). General contact details of provider: https://edirc.repec.org/data/adbinjp.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.