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Indo-Nepal economic cooperation: a subregional perspective

Author

Listed:
  • Neetu Choudhary

    (Assistant Professors of Economics, Division of Economics, A N Sinha Institute of Social Studies, Patna, Bihar, India)

  • Abhijit Ghosh

    (Assistant Professors of Economics, Division of Economics, A N Sinha Institute of Social Studies, Patna, Bihar, India)

Abstract

The present paper explores how a subregional engagement with bordering regions can stimulate economic cooperation among countries in the context of low levels of trade within the South Asian subregion. With special reference to shared historical legacy and culture-driven interaction — formal and informal — between Nepal and the state of Bihar in India, the paper develops a SWOT (strength, weakness, opportunity and threat) framework to rationalize and reflect on the need for a subregional perspective towards promotion of regional cooperation. With complementary applications of secondary data and field research, it shows how irrespective of formal country-level initiatives, Nepal and Bihar have engaged in successful economic partnerships and argues that those existing nodes represent the potential for greater subregional and regional economic cooperation. The paper also offers insights into formal and informal challenges and policy imperatives associated with the operationalization of the new perspective.

Suggested Citation

  • Neetu Choudhary & Abhijit Ghosh, 2014. "Indo-Nepal economic cooperation: a subregional perspective," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 21(2), pages 23-52, December.
    • Handle: RePEc:unt:jnapdj:v:21:y:2014:i:2:p:23-52
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    References listed on IDEAS

    as
    1. Pohit, Sanjib, 2009. "Overview of India-Nepal Trade: Trends, Trade Logistics and Impediments," MPRA Paper 45874, University Library of Munich, Germany, revised 2011.
    2. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014.
    3. Taneja, Nisha & Pohit, Sanjib, 2001. "India’s Informal Trade with Nepal: An Exploratory Assessment," MPRA Paper 94864, University Library of Munich, Germany.
    4. Prakash Kumar Shrestha, 2013. "Economic development in South and East Asia: empirical examination of East Asian Development Model," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 20(2), pages 1-28, December.
    5. Dyson, Robert G., 2004. "Strategic development and SWOT analysis at the University of Warwick," European Journal of Operational Research, Elsevier, vol. 152(3), pages 631-640, February.
    6. Nabi, Ijaz & Malik, Abdul & Hattari, Rabin & Husain, Turab & Shafqat, Adeel & Anwaar, Sana & Rashid, Ammar, 2010. "Economic growth and structural change in South Asia: miracle or mirage?," LSE Research Online Documents on Economics 36389, London School of Economics and Political Science, LSE Library.
    7. Vyuptakesh Sharan, 2010. "Analysing Indo-Nepal Economic Linkages," India Quarterly: A Journal of International Affairs, , vol. 66(3), pages 267-286, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Nepal; Bihar; informal; trade; subregional perspective; economic cooperation.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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