Deepening Intraregional Trade and Investment in South Asia - The Case of the Textiles and Clothing Industry
Trade Working Papers from East Asian Bureau of Economic Research
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.
Keywords: South Asia; trade; investment; Textile and clothing; regional cooperation (search for similar items in EconPapers)
JEL-codes: F14 F15 F59 (search for similar items in EconPapers)
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