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Fulfilling the Promises of South Asian Integration: A Gravity Estimation

Author

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  • Moinuddin, Mustafa

    (Asian Development Bank Institute)

Abstract

This paper examines the determinants and trade effects of the South Asian Preferential Trading Arrangement (SAPTA) using empirical methods. An empirical specification of the gravity model is developed to analyze the determinants of trade flows for the South Asian Free Trade Area (SAFTA) countries. The need for maintaining the primacy of economic integration in the region’s growth and development processes is highlighted. The paper argues that the recent success in the growth performance of the South Asian countries offers prospects as well as challenges for deeper integration into the global economy. Integration under the SAFTA is, the author argues, the first step in that direction.

Suggested Citation

  • Moinuddin, Mustafa, 2013. "Fulfilling the Promises of South Asian Integration: A Gravity Estimation," ADBI Working Papers 415, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0415
    as

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    References listed on IDEAS

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    1. Alan V. Deardorff, 2011. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 24, pages 267-293, World Scientific Publishing Co. Pte. Ltd..
    2. Martinez-Zarzoso, Inmaculada & Nowak-Lehmann, Felicitas, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Universidad del CEMA, vol. 6(2), pages 1-26, November.
    3. Nguyen Trung Kien & Yoshizo Hashimoto, 2005. "Economic Analysis Of Asean Free Trade Area; By A Country Panel Data," Discussion Papers in Economics and Business 05-12, Osaka University, Graduate School of Economics.
    4. Jose Daniel Rodríguez-Delgado, 2007. "Safta: Living in a World of Regional Trade Agreements," IMF Working Papers 2007/023, International Monetary Fund.
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    Cited by:

    1. Muhammad Ibrahim Shah, 2021. "Investigating the Role of Regional Economic Integration on Growth: Fresh Insights from South Asia," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(1), pages 35-57, January.
    2. Sushil Kumar & Shahid Ahmed, 2015. "Gravity Model by Panel Data Approach," Foreign Trade Review, , vol. 50(4), pages 233-249, November.
    3. Lubna NAZ* & Naeem-uz-ZAFAR** & Mohsin Hasnain AHMAD***, 2019. "THE IMPACT OF PREFERENTIAL TRADE AGREEMENTS ON SOUTH ASIAN EXPORT FLOWS: Using Matching Econometrics," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 29(2), pages 243-264.
    4. Mohammad Imran Hossain, 2018. "Determinants and Prospects of Intra-regional Trade in the Bay of Bengal and the Andaman Sea (BoBAS) Rim Countries of South Asia: A Gravity Model Simulation Approach," South Asian Survey, , vol. 25(1-2), pages 27-58, March.
    5. Ward, Megan & Herr, Hansjörg & Pédussel Wu, Jennifer, 2020. "South Asian Free Trade Area and food trade: Implications for regional food security," IPE Working Papers 148/2020, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    6. Shahriar, Saleh & Qian, Lu & Kea, Sokvibol, 2018. "China's economic integration with the Greater Mekong Sub-region: An empirical analysis by a panel dynamic gravity model," Economics Discussion Papers 2018-44, Kiel Institute for the World Economy (IfW Kiel).
    7. Swapan K. Bhattacharya & Gouranga G. Das, 2014. "Can South–South Trade Agreements Reduce Development Deficits?," Journal of South Asian Development, , vol. 9(3), pages 253-285, December.

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    More about this item

    Keywords

    south asia; trade; free trade agreement; fta; regional integration;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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