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South Asia: Formulating Services Sector Policies for Development, A Policy Perspective

Author

Listed:
  • Prachi Agarwal

    (United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office)

Abstract

This paper analyses the current development in trade in services in South Asia. South Asia’s language heritage, strong traditions of higher education, computer savvy diaspora and embrace of modern telecom infrastructure, have all contributed to services being a large part of the region’s GDP, with an increasing contribution to their export baskets. Countries in South Asia have formulated aggressive policies to promote the development of trade in services, with a focus on Information Technology and Communication, Professional services, Tourism and Travel, and Healthcare services. It was found that each country in the region has targeted specific niche markets to develop and to increase global exports and outreach. While some countries have formulated ‘Vision Documents” for their economy, others have devised specialized programs for “Priority Sectors”. This study divides the general policy themes under specific categories: (i) Skill development programs, (ii) nation-wide connectivity and digitization plans, (iii) initiatives to boost technology and entrepreneurship, with a focus on start-ups and intellectual property rights (IPRs), (iv) and export and brand promotion policies. This paper then highlights the best practices in the region and provides recommendations to develop a more competitive services sector. This research was undertaken to obtain an in-depth analysis of current policy making to promote the development of services for domestic and trade purposes, as well as assessing the impact of these policy tools. Such findings were primarily based on desk-based research from publicly available information sources combined with discussions with key stakeholders as well as an informed interpretation of the findings.

Suggested Citation

  • Prachi Agarwal, 2019. "South Asia: Formulating Services Sector Policies for Development, A Policy Perspective," Development Papers 1903, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.
  • Handle: RePEc:eap:sswadp:dp1903
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    File URL: https://www.unescap.org/sites/default/files/SSWA_Development%20Papers_1903.pdf
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    References listed on IDEAS

    as
    1. Shahbaz Nasir & Kaliappa Kalirajan, 2013. "Export Performance of South and East Asia in Modern Services," ASARC Working Papers 2013-07, The Australian National University, Australia South Asia Research Centre.
    2. World Bank, 2012. "Afghanistan Diagnostics Trade Integration Study," World Bank Publications - Reports 13215, The World Bank Group.
    3. Ayaz Ahmed & Henna Ahsan, 2011. "Contribution of Services Sector in the Economy of Pakistan," Working Papers id:4673, eSocialSciences.
    4. Peter M., 2017. "Trade costs and services [Coûts des échanges et services]," Post-Print hal-01683083, HAL.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    IT industry; South Asia; Trade in services; Trade policy;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy

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