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GTAP Resource #3653

"South Asia's Trade - A Review of Policies and Logistics"
by Mirza, Tasneem and Eleanor Bacani

Inefficiencies at borders and transportation have large implications for trade in South Asia. This paper provides a detailed overview of current trading circumstances in South Asia by exploring current policies and procedures in trading amongst countries, as well as logistics in transportation and borders. By interviewing trading bodies as well as private sector individuals who are involved in day-to-day trade in India, Bangladesh, Nepal and Bhutan, this paper provides a unique perspective on key bottlenecks that keep trading opportunities limited. To provide a macro perspective the paper further analyzes aggregate data on time and monetary costs of trade. To establish the relationship between border efficiency and trade, an elasticity of trade with respect to reforms is estimated for a set of 94 countries in 2004. Estimates are used to develop simulations which indicate that institutional reforms, such as streamlining procedures and reducing paperwork, are likely to be most effective to expand trade in South Asia. Also since simplifying legal processes are more cost-friendly as compared to large-scale infrastructure reforms, these should take greater priorities among trade-related reforms in South Asia.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Not published
Date: 2011
Created: Mirza, T. (4/16/2011)
Updated: Batta, G. (4/28/2011)
Visits: 1,462
- Domestic policy analysis
- Trade and the environment
- European Union
- Commonwealth of Independent States

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