Regional Integration and Trade Cost in South Asia

Nilanjan Banik () and John Gilbert

No 3681, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: 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.

Keywords: Regional Integration; Trade Cost; South Asia; Gravity model; Fourth LAEBA Annual Meeting (search for similar items in EconPapers)
JEL-codes: C32 F02 F15 (search for similar items in EconPapers)
Date: 2008-06
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Citations: View citations in EconPapers (5)

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Chapter: Regional Integration and Trade Costs in South Asia (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:3681

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