Hossain, Sharif M. (2009): South Asian Free Trade Area: Implications for Bangladesh.
Preview |
PDF
MPRA_paper_18517.pdf Download (631kB) | Preview |
Abstract
The current thesis has analyzed the impact of South Asian Free Trade Area (SAFTA) on Bangladesh in terms of export generation within member countries. A standard gravity model has been used to analyze Bangladesh’s export potential using cross section data. From the estimated result, it is observed that Bangladesh has huge export potential to South Asia in general, and India in particular. If SAFTA agreement is properly implemented then Bangladesh’s exports within this region would be much higher than the estimated potential export. In terms of imports, Bangladesh has exceeded its potential level. Therefore, the expected increase in import by Bangladesh from SAFTA member countries might not be as large as the expected increase in export. But it should be mentioned that the expected results can only be achieved by free trade in real sense i.e. goods and services can move freely across countries without any tariff and non-tariff barriers.
Item Type: | MPRA Paper |
---|---|
Original Title: | South Asian Free Trade Area: Implications for Bangladesh |
English Title: | South Asian Free Trade Area: Implications for Bangladesh |
Language: | English |
Keywords: | SAFTA, Gravity Model, Bangladesh’s Export Potential |
Subjects: | F - International Economics > F1 - Trade |
Item ID: | 18517 |
Depositing User: | Sharif Mosharraf Hossain |
Date Deposited: | 11 Nov 2009 00:05 |
Last Modified: | 27 Sep 2019 07:16 |
References: | Ahmed, N. (2006), ‘Bangladesh Apparel Industry and its Workers in a Changing World Economy’, PhD. thesis, Wageningen University, The Netherlands, available at: http://library.wur.nl/wda/dissertations/dis3942.pdf, accessed on June 10, 2009. Anderson, J. E. (1979), ‘A Theoretical Foundation for the Gravity Equation’, The American Economic Review, Vol. 69, No. 1, pp. 106-116. Anderson, J. E. and E. V. Wincoop (2003), ‘Gravity with Gravitas: A Solution to the Border Puzzle’, The American Economic Review, Vol. 93, No. 1, pp-170-192. Bandara, J. S. and W. Yu (2003), ‘How Desirable is the South Asian Free Trade Area? A Quantitative Economic Assessment’, The World Economy, Vol. 26, No. 9, pp. 1293-1323. Barbieri, K. (2002), The Liberal Illusion: Does Trade Promote Peace? Ann Arbor: University of Michigan Press. Batra, A. (2004), ‘India’s Global Trade Potential: The Gravity Model Approach’, Working Paper No. 151, New Delhi: Indian Council for Research on International Economic Relations. Bayes, A. (2006), ‘Bangladesh-India Trade: Tips from my Travels’, The Daily Star, January 24, online edition, available at: http://thedailystar.net/2006/01/24/d60124020325.htm, accessed on May 24, 2009. Baysan, P., A. Panagariya and N. Pitigala (2006), ‘Preferential Trading in South Asia’, Policy Research Working Paper No. 3813, Washington D. C.: The World Bank. Bhattacharya, S. K. (2001), ‘Regional Trading Arrangements among SAARC Countries and Insia’s Imports’, South Asia Economic Journal, Vol. 2, No. 2, pp. 281-312. Bhargava, K. K. (1998), ‘EU – SAARC: Comparisons and Prospects of Cooperation’, Discussion Paper No. C 15, Bonn: Center for European Integration Studies, University of Bonn. Bussiers, M., J. Fidrmuc and B. Schanatz (2005), Trade Integration of Central and Eastern European Countries: Lessons for a Gravity Model, Working Paper No 545, Frankfurt: European Central Bank. Crone, D. (1993), ‘Does Hegemony Matter? The Reorganization of the Pacific Political Economy’, World Politics, Vol. 45, No. 4, pp. 501-525. CUTS (2007), Strengthening the Linkages between Trade, Development and Poverty Reduction, Jaipur: CUTS CITEE. Dash, K. C. (1996), ‘The Political Economy of Regional Cooperation in South Asia’, Pacific Affairs, Vol. 69, No. 2, pp. 185-209. Dash, K. C. (2008), Regionalism in South Asia: Negotiating Cooperation, Institutional Structures, London: Routledge. Dash, K. C. (2009), ‘Towards Free Trade in South Asia: Political and Economic Dimensions’, Thunderbird Quarterly, Issue 2, Spring, online edition, available at: http://www.thunderbird.edu/knowledge_network/ctrs_excellence/private_equity/newsletter/articles/free_trade_in_south_asia.htm, accessed on: May 15, 2009. Dayal, P., A. Das, R. Banga, K. Iyengar, S. Ahmed (2008), Quantification of Benefits from Economic Cooperation in South Asia, New Delhi: Macmillan. Deardorff, A. V. (1998), ‘Determinants of Bilateral Trade: Does Gravity Work in a Classical World?’, in J. A. Frankel (ed.), The Regionalization of the World Economy, Chicago: University of Chicago Press, pp. 7-22. De, P. (2008), ‘Transportation Cost and Trade Competitiveness: Empirical Evidence from India’, Discussion Paper No. 142, Research and Information System for Developing Countries (RIS). Financial Express (2003), ‘Cement Imports from Bangladesh Run Into Concrete of Rules’, July 24, online edition, available at: http://www.financialexpress.com/news/cementimports- from-bangladesh-run-into-concrete-of-rules/86951/, accessed on: May 22, 2009. Fratianni, M. (2008), ‘The Gravity Equation in International Trade’, in A. M. Rugman (ed.) The Oxford Handbook of International Business, Oxford: Oxford University Press, pp. 72-89. Harshe, R. (1999), ‘South Asian Regional Co-operation: Problems and Prospects’, Economic and Political Weekly, Vol. 34, No. 19, pp. 1100-1105. Helpman, E. (1987), ‘Imperfect competition and International Trade: Evidence from fourteen industrial countries’, Journal of the Japanese and International Economics, Vol. 1, No. 1, pp. 62-81. Hossain, S. M. (2005), ‘Bangladesh and Free Trade Area: Regional and Bilateral Routes’, BIISS Journal, Vol. 26, No. 3, pp. 385-422. 39 Jain, S. C. (1999), ‘Prospects for a South Asian Free Trade Agreement: Problems and Challenges’, International Business Review, Vol. 8, No. 4, pp. 399-418. Jasim, E. H. (2009), ‘India Finalises Construction of Tipaimukh Dam: Adverse Impact Feared on Bangladesh’, The New Nation, May 10, online edition, available at: http://nation.ittefaq.com/issues/2009/05/10/news0820.htm, accessed on May 17, 2009. Jovanovic, M. N. (1992), International Economic Integration, London: Routledge. Kamel, A. R. (2004), ‘SAFTA and Economic Cooperation’, Paper Presented at SAFMA Regional Conference, August 20-21, Dhaka, available at: http://www.southasianmedia.net/conference/Regional_Cooperation/safta.htm, accessed on June 11, 2009. Khan, S. M. (1999), ‘South Asian Association for Regional Cooperation’, Journal of Asian Economics, Vol. 10, No. 3, pp. 489-495. Khan, S. R., M. Yousaf, F. H. Shaheen, and A. Tanveer (2008), ‘Regional Trade Agreements in South Asia: Trade and Conflict Linkages’, in S. R. Khan (ed.), Regional TradeIntegration and Conflict Resolution, Islamabad: Routledge, pp. 63-92. Linnemann, H. (1996), An Econometric Study of International Trade Flows, Amsterdam: North-Holland. Lohani, M. (2008), ‘SAARC Economic Cooperation: From SAPTA to SAFTA’, The Weekly Telegraph, August 06, online edition, available at: http://www.telegraphnepal.com/news_det.php?news_id=3859, accessed on April 25, 2009. Mahmud, M. (2005), ‘India Lifts Anti-Dumping Duty on Bangladeshi Battery’, The Daily Star, January 09, online edition, available at: http://www.thedailystar.net/2005/01/09/d50109050141.htm, accessed on May 23, 2009. Mohanty, S. K. (2003), ‘Regional Trade Liberalization under SAPTA and India’s Trade Linkages with South Asia: An Empirical Assessment’, Discussion Paper No. 48/2003, New Delhi: Research and Information System for Non-Aligned and Other Developing Countries (RIS). Moktan, S. (2008), ‘Evaluating the Intra-regional Exports and Trade Creation and Trade Diversion Effects of Trade Agreements in SAARC Countries’, South Asian Economic Journal, Vol. 9, No. 2, pp. 233-260. Nilsonn, L. (2000), ‘Trade Integration and the EU Economic Membership Criteria’, European Journal of political Economy, Vol. 16, No. 4, pp. 807-827. Panagariya, A. (2003), ‘South Asia: Does Preferential Trade Liberalisation Make Sense?’, The World Economy, Vol. 26, No. 9, pp. 1278-1291. Panagariya, A. (2000), ‘Preferential Trade Liberalization: The Traditional Theory and New Development’, Journal of Economics Literature, Vol. 38, No. 2, pp. 287-331. Pigato, M., C. Farah, K. Itakura, K. Jun, W. Martin, K Murrell and T. G. Srinivasan (1997), South Asia’s Integration into the World Economy, Washington D. C.: The World Bank. Pitigala, N. (2005), ‘What Does Regional Trade in South Asia Reveal about Future Trade Integration: Some Empirical Evidence’, Policy Research Working Paper No. 3497, Washington D. C.: The World Bank. Pohit, S. and Taneja, N. (2003), ‘India’s Informal Trade with Bangladesh: A Qualitative Assessment’, World Economy, Vol. 26, No. 8, pp. 1187-1214. Rahman, M. M. (2006), ‘A Panel Data Analysis of Bangladesh’s Trade: The Gravity Model Approach’, mimeograph, available at: http://www.etsg.org/ETSG2003/papers/rahman.pdf, accessed on May 39, 2009. Raihan, S. (2008), ‘SAFTA and the Bangladesh Economy: Assessments of Potential Implications’, Discussion Paper No. 2, Dhaka: South Asian Network on Economic Modeling. Raihan, S. and Razzaque, M. A. (2007), ‘Welfare Effects of South Asian Free Trade Area (SAFTA), Regional Trading Arrangements (RTAs) in South Asia: Implications for the Bangladesh Economy’, Paper prepared for the UNDP Regional Centre Colombo, available at: http://www.gtap.agecon.purdue.edu/resources/download/2956.pdf, accessed on April 10, 2009. SAARC Charter (1985), ‘Charter of the South Asian Association for Regional Cooperation’, available at: http://www.saarc-sec.org/data/docs/charter.pdf, accessed on March 28, 2009. SAFTA Agreement (2004), ‘Agreement on South Asian Free Trade Area (SAFTA)’, available at: http://www.saarc-sec.org/data/summit12/saftaagreement.pdf, accessed on March 28, 2009. SAPTA Agreement, (1993), ‘Agreement on SAARC Preferential Trading Arrangement (SAPTA)’, available at: http://www.worldtradelaw.net/fta/agreements/saptafta.pdf, accessed on April 04, 2009. Schiff, M. and L. A. Winters (2003), Regional Integration and Development, Washington DC.: The World Bank. Sheikh, A. (2004), ‘SAFTA: An Evaluation of Framework Agreement’, Paper Presented at the Commonwealth Business Council SAFTA roundtable, India. Sobhan, R. (2005), ‘The Twelfth SAARC Summit: Charting a Road Map for South Asian Cooperation’, South Asian Survey, Vol. 12, No. 1, pp. 3-19. Sohn, C. H. (2005), ‘Does the Gravity Model Explain South Korea’s Trade Flows?’, The Japanese Economic Review, Vol. 56, No. 4, pp. 417-430. Sultana, R. (2007), ‘Expansion of SAARC: Implications for South Asia’, BIISS Journal, Vol. 28, No. 2, pp. 140-162. Taneja, N., M. Sarvananthan, B. K. Karmacharya and S. Pohit (2004), ‘India’s Informal Trade with Sri Lanka and Nepal: An Estimation’, South Asia Economic Journal, Vol. 5, No. 1, pp. 27-54. Than, M. (2005), Myanmar in ASEAN: Regional Cooperation Experience, Singapore: Institute of Southeast Asian Studies. Tinbergen, J. (1962), Shaping the World Economy: Suggestions for an International Economic Policy, New York: Twentieth Century Fund. USAID (2005), South Asian Free Trade Area: Opportunities and Challenges, Washington DC: US Agency for international Development. Wadhva, C. D. (1996), ‘Assessing SAARC Preferential Trading Arrangement (SAPTA)’, South Asian Survey, Vol. 3, No. 1 & 2, pp. 173-195. Weerakoon, D. (2001), ‘Impediments to Economic Cooperation in South Asia: An overview’, in S. Kelegama (ed.), Impediments to Regional Economic Cooperation in South Asia, Colombo: Institute of Policy Studies of Sri Lanka and Coalition for Action on South Asian Cooperation, pp. 8-18. Wickramasinghe, U. (2006), ‘Operationalizing SAFTA: Issues and Options’, in South Asian Yearbook on Trade and Development, New Delhi: Center for Trade and Development, pp. 389-441. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/18517 |