ON THE INTEGRATION OF SOUTH ASIA

Outline

1. Introduction
2. Trade Integration in South Asia: Current Status
3. Methodology
4. Results and Implications
5. Concluding Remarks

ON THE INTEGRATION OF SOUTH ASIA

Author: Mahfuz Kabir

DOI Link: https://www.doi.org/10.56888/BIISSj2010v31n1a5

ABSTRACT

South Asian leaders have undertaken the scheme of regional integration through the formation of South Asian Association for Regional Cooperation (SAARC) two and a half decades back. Afterwards, they have undertaken a number of measures to strengthen cooperation in economic and trade arena, viz., SAARC Preferential Trading Arrangement (SAPTA) in 1995 and South Asian Free Trade Area (SAFTA) in 2006 as well as a host of confidence building measures. Have all these economic and non-economic measures led to integration amongst the members of the bloc? This study explores this important policy question by adopting time series econometric techniques. The results indicate that the important economic variables have long run or equilibrium relationship over the period 1985-2008, which imply a strong tendency of financial integration with a weak tendency of economic integration in the region.

BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

Outline