Int. J. of Transitions and Innovation Systems   »   2016 Vol.5, No.1

 

 

Title: IT-ITES trade of SAARC countries: does kaleidoscopic comparative advantage work?

 

Authors: Nalin Bharti; Kumar Gaurav; Chandan Kumar

 

Addresses:
Department of Humanities and Social Sciences, Indian Institute of Technology Patna, Amhara, Bihta 801103, Patna (Bihar), India
Department of Humanities and Social Sciences, Indian Institute of Technology Patna, Amhara, Bihta 801103, Patna (Bihar), India
Department of Humanities and Social Sciences, Indian Institute of Technology Patna, Amhara, Bihta 801103, Patna (Bihar), India

 

Abstract: Though, liberalisation of services trade is a new phenomenon, it has witnessed sustained growth and acceptance in recent decades. IT/ITES and its trade became the fastest growing sub-sector of trade in services. Services trade of SAARC countries became more dynamic in the post Uruguay Round. These economies are more integrated with the other economies of the world in services. Volatile comparative advantage with knife-edge specialisation pioneered the phrase, kaleidoscopic comparative advantage applicable equally to trade in services. In this backdrop, this study applied the qualitative (analysis of IT and telecommunications policy of all the SAARC countries) as well as quantitative methods (revealed comparative advantage - RCA index and services trade openness has been calculated) to capture the potentialities and competitiveness of IT/ITES trade of SAARC. This paper argues that the kaleidoscopic comparative advantage is not fixed only to bigger economies like India, but it has also extended to comparatively smaller economies like Sri Lanka, Bangladesh, and Pakistan.

 

Keywords: services; service trade; economic integration; Uruguay Round; liberalisation; IT-ITES; information technology; IT enabled services; kaleidoscopic comparative advantage; SAARC countries; South Asian Association for Regional Cooperation; revealed comparative advantage; RCA; trade openness; India; Sri Lanka; Bangladesh; Pakistan.

 

DOI: 10.1504/IJTIS.2016.081566

 

Int. J. of Transitions and Innovation Systems, 2016 Vol.5, No.1, pp.80 - 96

 

Submission date: 14 Dec 2015
Date of acceptance: 17 Aug 2016
Available online: 12 Jan 2017

 

 

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