Impact of Regional Trade Integration-Case of South Asia
| Main Authors: | Riaz Ahmed Dahar, Mr Altaf Mazhar Soomro, Maqsood Ali jamali, Dr.Faiz Muhammad Shaikh |
|---|---|
| Format: | Article |
| Bahasa: | eng |
| Terbitan: |
, 2017
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| Subjects: | |
| Online Access: |
https://zenodo.org/record/3534726 |
Daftar Isi:
- In this paper, impact of regional trade integration a case of South Asia is evaluated. Despite the large potential and availability of inputs like land, labour and capital the countries of South Asia namely India, Pakistan, Bangladesh and Sri Lanka are far behind from full use of regional trade integration. The data of four countries i.e. India, Pakistan, Bangladesh and Sri Lanka is taken as a sample for regression. After regression, this paper witnessed that volume of trade in South Asia has significantly increased after formation of SAARC but still it has a big potential to improve. The regression analysis shows that growth in GDP, Population, and Foreign Exchange contributed positively in growth of exports whereas decrease in exchange rate and CPI has also positive impact in growth of exports. The paper witnessed that formation of SAARC does not have any significant impact on trade creation or trade diversion. It is evaluated that though consistent efforts have been made at the regional level for regional integration through formation of SAFTA (i.e. South Asian Preferential Trade Agreement) under SAARC but due to mutual conflicts, hatred, lack of trust and smuggling (i.e. black marketing) role of SAARC is insignificant. In this regard, it is proposed that if better policies be chalked out i.e. tariffs rates be reduces, trading quotas are removed, trade among regional countries be promoted then the goal of high trade can easily be achieved. The availability of better infrastructure, sound institutions, skilled labour and better communication system is the key towards promotion of regional trade integration.