Trade facilitation in South Asia

Abstract

Purpose

The purpose of this study is to discuss the progress and challenges of South Asia in trade liberalization and facilitation, and to quantitatively demonstrate the potential benefits of trade facilitation in South Asia.

Design/methodology/approach

The quantitative study simulates the trade gains to the region based on the gravity model estimation for 101 world countries.

Findings

The gains to the region are estimated to be $31 billion in 2007 and $26 billion in 2010 if South Asia and the “rest of the world” raised levels of trade facilitation halfway to the world average. Of those trade gains, about 80 per cent (in 2007) and 67 per cent (in 2010) of the total gains to South Asia will be generated from South Asia's own efforts.

Originality/value

Thus this study demonstrates the importance of trade facilitation as an instrument for expansion of trade both within South Asia and with the rest of the world, as well as policy recommendations regarding the priority area for reform.

Citation

Otsuki, T., Honda, K. and Wilson, J.S. (2013), "Trade facilitation in South Asia", South Asian Journal of Global Business Research, Vol. 2 No. 2, pp. 172-190. https://doi.org/10.1108/SAJGBR-12-2011-0052