An empirical examination of trade flows in the SAARC region
by P.R. Madhusoodanan
International Journal of Business and Globalisation (IJBG), Vol. 5, No. 3, 2010

Abstract: South Asia combines a low level of regional integration and the presence of relatively high trade barriers. The proportion of trade originating in the region has increased in the last decade but still lags behind many similar regional arrangements. The present study employs an augmented gravity model to examine the impact of a set of macroeconomic and other policy factors on trade flows in the South Asian Association for Regional Cooperation (SAARC) region. The interesting finding is that export between two countries would increase by 152.2%, if there exists a bilateral trade agreement between countries compared to country-pairs without having bilateral trade ties. The empirical analysis reveals that reduction in tariff level is also a better measure to improve trade in the region. Further, the study supports specialisation in the region based on the relative factor endowments and cost advantage as well.

Online publication date: Wed, 01-Sep-2010

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Globalisation (IJBG):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com