Regional Integration and Trade Cost in South Asia

Until now, amount of inter-country trade within South Asian nations have been low. While similarities in exports profile can be seen as a reason for this low value of trade it might not be a valid one, especially in presence of growing South Asian income. Intra-industry trade theory suggests that complementarity might actually increase trade in presence of a rising income. There can be other important factors, such as, trade costs. Using an augmented gravity model in a panel framework the authors try to identify the components of trade costs that might have resulted in lower inter-country South Asian trade. This paper was prepared for the Latin America/Caribbean and Asia/Pacific Economics and Business Association (LAEBA)'s 4th Annual Meeting held in Lima, Peru, on June 17, 2008.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Nilankan Banik
Format:	Working Papers biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Integration and Trade, C32 - Time-Series Models • Dynamic Quantile Regressions • Dynamic Treatment Effect Models • Diffusion Processes • State Space Models, F02 - International Economic Order and Integration, F15 - Economic Integration, Regional Integration, Trade Cost, South Asia, Gravity model, Fourth LAEBA Annual Meeting,
Online Access:	http://dx.doi.org/10.18235/0011317 https://publications.iadb.org/en/regional-integration-and-trade-cost-south-asia
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