Global Production Networks and Economic Corridors: Can They Be Drivers for South Asia’s Growth and Regional Integration?

Abstract

"Global production networks are a phenomenon of great significance in world trade and production, especially in Asia. While East Asia and Southeast Asia have rapidly established themselves as major players in global production network trade, South Asia has lagged behind. This paper examines the role of economic corridors in facilitating the access of South Asian countries to global production networks, in particular those based in East Asia and Southeast Asia. It does so by first reviewing the state of regional trade integration in South Asia. It then examines the nature of engagement of South Asia, and in particular, India, with the dynamic and high growth global production networks based in East and Southeast Asia, with a focus on disaggregated export data in the key network trade categories for India. Finally, the paper discusses the role of regional and national economic corridors that could potentially link South Asia to the rest of Asia, and identifies the key determinants of greater integration of South Asia with the global production networks based in East and Southeast Asia. "