Kathuria, Sanjay

Macroeconomics, Trade, and Investment Global Practice
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economic growth, economic integration, international trade policy, economic competitiveness, fiscal policy, technology development, financial sector development, gender and development
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Macroeconomics, Trade, and Investment Global Practice
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Last updated January 31, 2023
Sanjay Kathuria is Adjunct Professor, Georgetown University; Visiting Faculty, Ashoka University; Senior Visiting Fellow at the Centre for Policy Research, India; and Non-Resident Senior Fellow at the Institute of South Asian Studies, Singapore. Earlier, he was a Lead Economist at the World Bank in Washington, D.C. Sanjay Kathuria is one of the leading thinkers and commentators on economic integration in South Asia and the economic development of the region. In 27 years at the World Bank, from 1992 to 2019, he worked in South Asia, Latin America and the Caribbean, and Eastern Europe, including field assignments in New Delhi and Dhaka. Before joining the World Bank, he was a Fellow at the Indian Council for Research on International Economic Relations in New Delhi, from 1982-1992.

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Now showing 1 - 2 of 2
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    Opening Up Markets to Neighbors : Gains for Smaller Countries in South Asia
    (World Bank, Washington, DC, 2015-01) Kathuria, Sanjay ; Shahid, Sohaib
    The South Asia Free Trade Area (SAFTA) came into effect in 2006, but free and unfettered trade is still a work in progress. Drawing from theory and evidence, this note looks at how all countries, especially the smaller ones, can gain from mutual trade liberalization. Consumers, exporters, and producers, the three key players in this debate, all stand to gain from multilateral trade. Consumers enjoy lower prices, more product variety, and better quality goods. Exporters obtain access to much larger markets and sourcing opportunities for key inputs. Producers are incentivized to become more efficient, increase their sizes and scales via access to a bigger market, gain cheaper and higher quality inputs, and receive more foreign direct investment (FDI). As an example of how smaller South Asian nations can reap significant benefits, the US-Mexican asymmetry case study is presented, demonstrating how Mexico rose to become the world's thirteenth largest economy after joining NAFTA. Given that the South Asia region is in the process of making SAFTA effective, nations that hold out from the process could suffer by being "innocent bystanders," which is a welfare loss faced by a country that does not fully participate in a regional agreement being created around it.
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    How Has Regional Integration Taken Place in Other Regions?: Lessons for South Asia
    (World Bank, Washington, DC, 2015-04) Kathuria, Sanjay ; Shahid, Sohaib ; Ferrantino, Michael Joseph
    As the momentum for multilateral trade liberalization has slowed, an increasing amount of liberalization is taking place at a regional level. As of April 2015, there are 406 regional trade agreements (RTAs) in force worldwide, more than double the number in force in 2000. These agreements cover over half of international trade. Countries engage in regional cooperation for a variety of reasons. First, it is easier to achieve agreement among a small number of regional partners than it is globally. Second, regional cooperation takes advantage of existing natural tendencies for regional trade that arise from geography and shared culture. This reinforces the regional division of labor already taking place among firms. Global value chains, in which lead firms organize a division of labor for complex products among many countries, often turn out to have a regional focus. Think, for example, of the electronics value chain in East Asia, and the automotive value chains focused on the United States, Germany, and Japan. South Asia itself is a small but growing part of value chains in textiles and apparel with both regional depth and cross-linkages to East Asia. This piece will focus on four aspects of trade liberalization (trade facilitation, non-tariff measures/barriers, intra-regional investment, and energy cooperation) that go beyond traditional preferential tariff reduction to illustrate both the potential of south-south liberalization and some of the particular challenges faced by South Asia. There is widespread agreement that deeper regional engagement in these areas will benefit the people of South Asia.