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Deepening Intraregional Trade and Investment in South Asia - The Case of the Textiles and Clothing Industry

Author

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  • Meenu Tewari

    (Indian Council for Research on International Economic Relations)

Abstract

This paper draws on recent field work within South Asia and an extensive review of secondary data to examine the dynamics of cross border trade and investment in South Asia, exploring the potential for, and obstacles to, such trade through the lens of a sector that is salient throughout South Asia : Textiles and Clothing. Despite the growing competitiveness of this sector in the SAARC region, there is very little regional interlinkage within South Asias textile and clothing industry. Currently less than 4% of SAARCs global T&C exports are traded within the region. There is growing evidence of widespread substitution of South Asia by East Asia as the sourcing hub of fabric and accessories by the regions major clothing exporters. Over 80% of the fabric needs of Bangladesh and Sri Lanka, for example, come from outside the region even though India and Pakistan are net exporters of textiles.

Suggested Citation

  • Meenu Tewari, 2008. "Deepening Intraregional Trade and Investment in South Asia - The Case of the Textiles and Clothing Industry," Trade Working Papers 22265, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:tradew:22265
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    File URL: http://www.eaber.org/node/22265
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    2. Nordås, Hildegunn Kyvik, 2004. "The global textile and clothing industry post the agreement on textiles and clothing," WTO Discussion Papers 5, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. Nisha Taneja, 2006. "India - Pakistan Trade," Indian Council for Research on International Economic Relations, New Delhi Working Papers 182, Indian Council for Research on International Economic Relations, New Delhi, India.
    4. World Bank, 2005. "Bangladesh : Growth and Export Competitiveness," World Bank Publications - Reports 8569, The World Bank Group.
    5. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Prema-chandra Athukorala, 2014. "Intra-regional FDI and Economic Integration in South Asia," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(1), pages 1-35, March.
    2. Sungsup Ra & Brian Chin & Amy Liu, 2017. "Challenges and Opportunities for Skills Development in Asia: Changing Supply, Demand, and Mismatches," Working Papers id:11838, eSocialSciences.
    3. Ray, Saon, 2019. "What explains India’s poor performance in garments exports: evidence from five clusters?," MPRA Paper 95132, University Library of Munich, Germany.
    4. Prema-chandra Athukorala, 2013. "Intra-Regional FDI and Economic Integration in South Asia: Trends, Patterns and Prospects," Departmental Working Papers 2013-05, The Australian National University, Arndt-Corden Department of Economics.
    5. Prema†chandra Athukorala & Raveen Ekanayake, 2018. "Repositioning in the global apparel value chain in the post†MFA era: Strategic issues and evidence from Sri Lanka," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 247-269, March.
    6. Jabbar Ul-Haq & Hubert Visas & Seyedrohollah Ahmadi & Ahmed Raza Cheema, 2020. "Female Earnings in the Apparel Industry Post-MFA: Evidence From Pakistan," SAGE Open, , vol. 10(2), pages 21582440209, May.
    7. Savchenko, Yevgeniya & Acevedo, Gladys Lopez, 2012. "Female wages in the apparel industry post-MFA : the cases of Cambodia and Sri Lanka," Policy Research Working Paper Series 6061, The World Bank.
    8. World Bank, 2012. "Consolidating and Accelerating Exports in Bangladesh : A Policy Agenda," World Bank Publications - Reports 11911, The World Bank Group.
    9. Suparna Karmakar, 2014. "Protecting indigenous knowledge through geographical indications: a case study of the textile industry in India," Chapters, in: Sanghoon Ahn & Bronwyn H. Hall & Keun Lee (ed.), Intellectual Property for Economic Development, chapter 5, pages 120-138, Edward Elgar Publishing.

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    More about this item

    Keywords

    South Asia; trade; investment; Textile and clothing; regional cooperation;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other

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