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Strengthening Regional Trade and Production Networks Through Transport Connectivity in South and South-West Asia

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  • Prabir De

Abstract

South and South-West Asia (SSWA) region has been able to improve intra-regional trade during the last decade. However, much is left to be done to realise the full trade potential between SSWA countries, which also share important complementarities that can become the basis of region-wide production networks. Such networks would enhance the combined productivity and competitiveness of SSWA, but their development is stifled by poor intra-regional connectivity status. The quality and capacity of the subregion’s infrastructure, both on the national and crossborder levels, is certainly a matter of concern. SSWA regional economic cooperation programmes have to be made much stronger to address regional infrastructure needs and build enabling institutions and policies. This paper observes, in the light of a case study of regional trade in ‘parts and components’, that SSWA countries must improve its supply chain connectivity considerably in order to effectively link their production units with global value chains. Further, a comparative analysis of efficiency across different modes of cross-border transportation in the subregion shows that overland transport corridors such as TIPI-BM and ITIDKD proposed by ESCAP can play important role in the development of regional production networks. In order to improve overland connectivity, a comprehensive and cooperative approach is needed to address the physical (hard) and non-physical (soft) infrastructure issues. The paper also supports the need of a regional connectivity masterplan to guide most optimal development of its connectivity requirements.

Suggested Citation

  • Prabir De, 2014. "Strengthening Regional Trade and Production Networks Through Transport Connectivity in South and South-West Asia," Development Papers 1401, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.
    • Handle: RePEc:eap:sswadp:dp1401
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    References listed on IDEAS

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    1. Fukunari KIMURA & Izuru KOBAYASHI, 2009. "Why Is the East Asia Industrial Corridor Needed?," Working Papers p001, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Yann Duval & Chorthip Utoktham, 2011. "Trade Costs in Asia and the Pacific: Improved and Sectoral Estimates," Working Paper Series 511, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    3. Daniel Saslavsky & Ben Shepherd, 2014. "Facilitating international production networks: The role of trade logistics," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(7), pages 979-999, October.
    4. De, Prabir & Raihan, Selim & Kathuria, Sanjay, 2012. "Unlocking Bangladesh-India trade : emerging potential and the way forward," Policy Research Working Paper Series 6155, The World Bank.
    5. Prabir De, 2009. "Regional Cooperation for Regional Infrastructure Development : Challenges and Policy Options for South Asia," Development Economics Working Papers 22988, East Asian Bureau of Economic Research.
    6. Research and Information System for Developing Countries (RIS),, 2008. "South Asia Development and Cooperation Report 2008," OUP Catalogue, Oxford University Press, number 9780195699425.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Aggarwal, Sakshi, 2023. "The empirical measurement and determinants of intra-industry trade for a developing country," MPRA Paper 117112, University Library of Munich, Germany.
    2. Anja Slany, 2019. "The Role of Trade Policies in Building Regional Value Chains – Some Preliminary Evidence From Africa," South African Journal of Economics, Economic Society of South Africa, vol. 87(3), pages 326-353, September.
    3. Mustafizur Rahman & Hosna Jahan, 2015. "Second-generation Cooperation Agenda," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(1), pages 1-26, March.
    4. Nagesh Kumar, 2015. "Potential and Prospects of Strengthening Transport Connectivity for Regional Economic Integration in Southern Asia," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(2_suppl), pages 39-54, September.

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    More about this item

    Keywords

    South Asia; Trade; Regional transport connectivity; Trade facilitation; Regional integration; regional production networks;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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