IDEAS home Printed from https://ideas.repec.org/a/sae/globus/v15y2014i4p795-814.html
   My bibliography  Save this article

Assessing the Barriers to Trade in Services in South Asia

Author

Listed:
  • Arindam Banik

    (Arindam Banik is Professor at International Management Institute, B-10, Qutab Institutional, Area, Tara Crescent, New Delhi, 110 016, India. E-mail: banik.arindam@gmail.com)

  • Pradip K. Bhaumik

    (Pradip K. Bhaumik is Professor at International Management Institute (IMI), B-10, Qutab, Institutional Area, Tara Crescent, New Delhi 110 016, India. E-mail: pkbhaumik@imi.edu)

Abstract

This study aims to assess barriers to service trade in the education, health, telecom, transport, travel and tourism, and banking and insurance sectors of selected South Asian economies such as India, Sri Lanka, Pakistan, Nepal and Bangladesh, including both trade and domestic restrictions. The analysis is focused on the computation of aggregate and modal service trade restrictiveness indices (STRIs) by sector, drawing on information gathered based on detailed questionnaires. The conclusions highlight that while significant regulatory reforms have taken place in certain (for example Telecom) service sectors over the last decade, a broad range of restrictions still remain. The most significant change in these service sectors has been the lifting or softening of the constraints imposed on foreign equity participation. Interestingly, the economies in terms of regulatory reforms are more open to non-South Asian economies and not so much open to each other. However, reforms have had varying degrees of impact on market structure depending on the country and the sector.

Suggested Citation

  • Arindam Banik & Pradip K. Bhaumik, 2014. "Assessing the Barriers to Trade in Services in South Asia," Global Business Review, International Management Institute, vol. 15(4), pages 795-814, December.
    • Handle: RePEc:sae:globus:v:15:y:2014:i:4:p:795-814
    DOI: 10.1177/0972150914543239
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972150914543239
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972150914543239?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mattoo, Aaditya, 1998. "Financial services and the WTO: Liberalization in the developing and transition economies," WTO Staff Working Papers TISD-98-03, World Trade Organization (WTO), Economic Research and Statistics Division.
    2. Mohamed Ali Marouani & Laura Munro, 2009. "Assessing Barriers to Trade in Services in The MENA Region," Working Papers 496, Economic Research Forum, revised Jul 2009.
    3. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2000. "Computational Analysis of the Accession of Chile to the NAFTA and Western Hemisphere Integration," The World Economy, Wiley Blackwell, vol. 23(2), pages 145-174, February.
    4. Nora Dihel & Ben Shepherd, 2007. "Modal Estimates of Services Barriers," OECD Trade Policy Papers 51, OECD Publishing.
    5. Arindam Banik & Pradip K. Bhaumik, 2006. "Foreign Investment: China," Palgrave Macmillan Books, in: Foreign Capital Inflows to China, India and the Caribbean, chapter 4, pages 49-82, Palgrave Macmillan.
    6. Mattoo, Aaditya & Rathindran, Randeep, 2006. "Measuring Services Trade Liberalization and Its Impact on Economic Growth: An Illustration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 64-98.
    7. Arindam Banik & Pradip K. Bhaumik, 2006. "Foreign Capital Inflows to China, India and the Caribbean," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-80077-9.
    8. Pradip K. Bhaumik & Arindam Banik, 2006. "FDI, Skilled Labour and the Caribbean's Emerging Competitive Disadvantage," Global Business Review, International Management Institute, vol. 7(2), pages 175-193, August.
    9. Arindam Banik & Pradip K. Bhaumik, 2006. "Foreign Investment: The Caribbean," Palgrave Macmillan Books, in: Foreign Capital Inflows to China, India and the Caribbean, chapter 6, pages 116-146, Palgrave Macmillan.
    10. Hoekman, Bernard & Mattoo, Aaditya, 2008. "Services trade and growth," Policy Research Working Paper Series 4461, The World Bank.
    11. Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Safdar Sohail & Noorulain Hanif & Maliha Quddus, 2012. "Liberalization of Trade in Services under SAFTA: Prospects and Challenges for Pakistan," Chapters, in: Sultan Hafeez Rahman & Sridhar Khatri & Hans-Peter Brunner (ed.), Regional Integration and Economic Development in South Asia, chapter 6, Edward Elgar Publishing.
    2. Deepraj Mukherjee, 2018. "Corruption in International Business: Does Economic Globalization Help?," Global Business Review, International Management Institute, vol. 19(3), pages 623-634, June.
    3. Devarakonda, S. & Chittineni, J., 2019. "Does Insurance Promote Economic Growth? Evidence from BRICS Countries," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 8(3), pages 135-146, September.
    4. Rabia Khatun, 2016. "Relation between Trade in Financial Services and Economic Growth in BRICS Economies: Cointegration and Causality Approach," Global Business Review, International Management Institute, vol. 17(1), pages 214-225, February.
    5. Hadi Al-Abrrow & Jaber Ali & Alhamzah Alnoor, 2022. "Multilevel Influence of Routine Redesigning, Legitimacy and Functional Affordance on Sustainability Accounting: Mediating Role of Organizational Sense-making," Global Business Review, International Management Institute, vol. 23(2), pages 287-312, April.
    6. Suresh Singh, 2017. "Rise of Born Globals and Their Association with High Technology Intensity or Services Sector— Myths or Reality?," Global Business Review, International Management Institute, vol. 18(6), pages 1424-1434, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    2. Sahoo, Pravakar & Dash, Ranjan Kumar, 2014. "India's surge in modern services exports: Empirics for policy," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 1082-1100.
    3. Alan V. Deardorff & Robert M. Stern, 2009. "Empirical Analysis of Barriers to International Services Transactions and the Consequences of Liberalization," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 15, pages 523-595, World Scientific Publishing Co. Pte. Ltd..
    4. López, Dorotea & García, Camila & Muñoz, Felipe, 2018. "Trade in services and development: Policy perception in Chile," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 12(2), pages 33-44.
    5. Fontagné, Lionel & Guillin, Amélie & Mitaritonna, Cristina, 2010. "Estimations of Tariff Equivalents for the Services Sectors," Conference papers 331941, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Massimo Geloso Grosso & Iza Lejárraga & Hildegunn Kyvik Nordås & Frédéric Gonzales & Sébastien Miroudot & Asako Ueno & Dorothée Rouzet, 2014. "Services Trade Restrictiveness Index (STRI): Construction, Architecture and Engineering Services," OECD Trade Policy Papers 170, OECD Publishing.
    7. Ingo Borchert & Batshur Gootiiz & Arti Grover Goswami & Aaditya Mattoo, 2017. "Services Trade Protection and Economic Isolation," The World Economy, Wiley Blackwell, vol. 40(3), pages 632-652, March.
    8. Fontagné, Lionel & Mitaritonna, Cristina, 2013. "Assessing barriers to trade in the distribution and telecom sectors in emerging countries," World Trade Review, Cambridge University Press, vol. 12(1), pages 57-78, January.
    9. Lee-Rong Wang & Chung-Hua Shen & Ching-Yang Liang, 2008. "Financial Liberalization under the WTO and Its Relationship with the Macro Economy," NBER Chapters, in: International Financial Issues in the Pacific Rim: Global Imbalances, Financial Liberalization, and Exchange Rate Policy, pages 315-345, National Bureau of Economic Research, Inc.
    10. Laborde, David & Valin, Hugo, 2011. "Assessing the EU biofuel land use change effects: estimates with the MIRAGE-BioF model and uncertainty," Conference papers 332061, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Yongrong Xin & Aftab Hussain Tabasam & Zhenling Chen & Aysha Zamir & Carlos Samuel Ramos-Meza, 2024. "Analyzing the Impact of Foreign Direct Investment, Energy Consumption on Services Exports, and Growth of the Services Sector: Evidence from SAARC Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 5709-5728, June.
    12. Kazuhiro Sugie & Massimo Geloso Grosso & Hildegunn Kyvik Nordås & Sébastien Miroudot & Frédéric Gonzales & Dorothée Rouzet, 2015. "Services Trade Restrictiveness Index (STRI): Logistics Services," OECD Trade Policy Papers 183, OECD Publishing.
    13. Drusilla K. Brown & Robert M. Stern, 2001. "Measurement and Modeling of the Economic Effects of Trade and Investment Barriers in Services," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 262-286, May.
    14. Ranjan Dash & P. Parida, 2013. "FDI, services trade and economic growth in India: empirical evidence on causal links," Empirical Economics, Springer, vol. 45(1), pages 217-238, August.
    15. Lücke, Matthias & Spinanger, Dean, 2004. "Liberalizing international trade in services: Challenges and opportunities for developing countries," Kiel Discussion Papers 412, Kiel Institute for the World Economy (IfW Kiel).
    16. Samuel Admassu, 2020. "An empirical analysis of the causal nexus between service trade and income," Empirical Economics, Springer, vol. 59(2), pages 799-816, August.
    17. Karam, Fida & Zaki, Chahir, 2015. "Trade volume and economic growth in the MENA region: Goods or services?," Economic Modelling, Elsevier, vol. 45(C), pages 22-37.
    18. repec:hal:pseose:hal-00975560 is not listed on IDEAS
    19. Novella Bottini & Mohamed Ali Marouani, 2009. "An Estimation of Service Sectors Restrictiveness in The MENA Region," Working Papers 489, Economic Research Forum, revised May 2009.
    20. Dorothée Rouzet & Hildegunn Kyvik Nordås & Frédéric Gonzales & Massimo Geloso Grosso & Iza Lejárraga & Sébastien Miroudot & Asako Ueno, 2014. "Services Trade Restrictiveness Index (STRI): Financial Services," OECD Trade Policy Papers 175, OECD Publishing.
    21. Massimo Geloso Grosso & Hildegunn Kyvik Nordås & Frédéric Gonzales & Iza Lejárraga & Sébastien Miroudot & Asako Ueno & Dorothée Rouzet, 2014. "Services Trade Restrictiveness Index (STRI): Legal and Accounting Services," OECD Trade Policy Papers 171, OECD Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:globus:v:15:y:2014:i:4:p:795-814. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.imi.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.