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The Trade Effects of a South Asian Customs Union. An Expository Study

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Listed:
  • M. AKHLAQUR RAHMAN

    (Jahangir Nagar University,)

  • AYUBUR RAHMAN BHUYAN

    (University of Dacca.)

  • SADREL REZA

    (University of Dacca.)

Abstract

The paper estimates the static trade effects of a customs union comprising Bangladesh, India, Nepal, Pakistan and Sri Lanka. Although these effects are found to vary between countries, for the region as a whole the trade-creation effects appear to be greater than the trade-diversion effects. Despite their smallness, the direction of the change indicated by the static results seems encouraging to possible attempts at the formation of a customs union among South Asian countries.

Suggested Citation

  • M. Akhlaqur Rahman & Ayubur Rahman Bhuyan & Sadrel Reza, 1981. "The Trade Effects of a South Asian Customs Union. An Expository Study," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 20(1), pages 61-80.
    • Handle: RePEc:pid:journl:v:20:y:1981:i:1:p:61-80
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    File URL: http://www.pide.org.pk/pdf/PDR/1981/Volume1/61-80.pdf
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    References listed on IDEAS

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    1. R. Triffin, 1960. "The Size of the Nation and Its Vulnerability to Economic Nationalism," International Economic Association Series, in: E. A. G. Robinson (ed.), Economic Consequences of the Size of Nations, chapter 0, pages 247-264, Palgrave Macmillan.
    2. Harry G. Johnson, 1960. "The Cost of Protection and the Scientific Tariff," Journal of Political Economy, University of Chicago Press, vol. 68(4), pages 327-327.
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    Cited by:

    1. A. Ganesh Kumar & Gordhan K. Saini, 2009. "Economic Cooperation in South Asia," Journal of South Asian Development, , vol. 4(2), pages 253-281, July.
    2. A. Ganesh Kumar & Gordhan Kumar Saini, 2007. "Economic co-operation in South Asia: The Dilemma of SAFTA and beyond," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2007-017, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Jayatilleke S. Bandara & Wusheng Yu, 2003. "How Desirable is the South Asian Free Trade Area? A Quantitative Economic Assessment," The World Economy, Wiley Blackwell, vol. 26(9), pages 1293-1323, September.

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