IDEAS home Printed from https://ideas.repec.org/a/sae/soudev/v20y2025i1p58-80.html
   My bibliography  Save this article

Exploring Reciprocal and Non-reciprocal Policies of Market Access for SAARC Countries

Author

Listed:
  • Amjad Masood
  • Junaid Ahmed
  • Fatima Olanike Kareem

Abstract

This study examines the effect of trade agreements on the bilateral export flows of South Asian Association for Regional Cooperation (SAARC) countries. For empirical estimation, we applied a structural gravity model using the Poisson pseudo-maximum likelihood estimator on annual data from 2000 to 2019. Our approach, following recent developments in gravity trade literature, incorporates domestic sales alongside international trade to fully account for multilateral resistance to trade. The findings show that free trade agreements (FTAs) play a significant role in facilitating trade among SAARC countries, particularly in exporting raw materials and intermediate goods. In contrast, extra-bloc trade largely depends on preferential market access through programmes such as the generalized system of preferences (GSPs) scheme of the European Union. However, preferential tariff schemes designed for the least developed countries have no discernible impact. Surprisingly, no trade facilitation role is evident in the exports of capital goods. Based on these findings, the study offers policy guidance on how the structure of a trade agreement impacts trade connectivity within and beyond the bloc as well as export composition. Well-designed agreements with comprehensive tariff line coverage can facilitate exports of high-value-added products. Moreover, to effectively leverage the trade benefits enabled by GSP arrangements, developing countries must enhance their institutional capacities to ensure compliance with the social, environmental and other prerequisites outlined by GSPs.

Suggested Citation

  • Amjad Masood & Junaid Ahmed & Fatima Olanike Kareem, 2025. "Exploring Reciprocal and Non-reciprocal Policies of Market Access for SAARC Countries," Journal of South Asian Development, , vol. 20(1), pages 58-80, April.
  • Handle: RePEc:sae:soudev:v:20:y:2025:i:1:p:58-80
    DOI: 10.1177/09731741241299602
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09731741241299602
    Download Restriction: no

    File URL: https://libkey.io/10.1177/09731741241299602?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
    ---><---

    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:soudev:v:20:y:2025:i:1:p:58-80. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: .

    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.