Regional Integration and Trade Costs in South Asia
Banik, Nilanjan; Gilbert, John | December 2008
Until now, the value of inter-country trade within South Asian nations has been low. While similarities in the exports profiles can be seen as a reason for this low value of trade, it might not be a valid one, especially given the presence of growing South Asian income. The intraindustry trade theory suggests that complementarity might actually increase trade in the presence of a rising income. There may be other important factors such as trade costs. Using an augmented gravity model in a panel framework, we try to identify the components of trade costs that might have resulted in lower inter-country South Asian trade.
CitationBanik, Nilanjan; Gilbert, John. 2008. Regional Integration and Trade Costs in South Asia. © Asian Development Bank. http://hdl.handle.net/11540/3715. License: CC BY 3.0 IGO.
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