Opening Up Markets to Neighbors : Gains for Smaller Countries in South Asia

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collection.link.283
https://openknowledge.worldbank.org/handle/10986/22029
collection.name.283
SARConnect
dc.contributor.author
Kathuria, Sanjay
dc.contributor.author
Shahid, Sohaib
dc.date.accessioned
2015-02-05T20:03:31Z
dc.date.available
2015-02-05T20:03:31Z
dc.date.issued
2015-01
dc.description.abstract
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.
en
dc.identifier.uri
http://hdl.handle.net/10986/21407
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
SARConnect;
dc.rights
CC BY 3.0 IGO
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
apparel
dc.subject
apparel exports
dc.subject
bilateral Free Trade Agreement
dc.subject
Bilateral trade
dc.subject
capital markets
dc.subject
Common Market
dc.subject
competitiveness
dc.subject
consumer goods
dc.subject
Consumers
dc.subject
cost reduction
dc.subject
cross-border issues
dc.subject
Currency
dc.subject
customs
dc.subject
customs union
dc.subject
decision making
dc.subject
developed countries
dc.subject
Development Economics
dc.subject
economic cooperation
dc.subject
export growth
dc.subject
export markets
dc.subject
export products
dc.subject
exporters
dc.subject
exports
dc.subject
Federal Reserve
dc.subject
Federal Reserve Bank
dc.subject
foreign capital
dc.subject
foreign competition
dc.subject
foreign direct investment
dc.subject
Free Trade
dc.subject
free trade agreements
dc.subject
Free Trade Area
dc.subject
free trade zones
dc.subject
GDP
dc.subject
growth rate
dc.subject
impact of trade
dc.subject
impact of trade reforms
dc.subject
import tariffs
dc.subject
imports
dc.subject
industry trade
dc.subject
International economics
dc.subject
international telecommunications
dc.subject
LDCs
dc.subject
manufacturing industries
dc.subject
Market size
dc.subject
mutual trade
dc.subject
new markets
dc.subject
new products
dc.subject
non-tariff barriers
dc.subject
per capita income
dc.subject
policy makers
dc.subject
Policy Research
dc.subject
political economy
dc.subject
productivity
dc.subject
productivity growth
dc.subject
protectionist
dc.subject
real income
dc.subject
regional integration
dc.subject
small countries
dc.subject
small country
dc.subject
small economies
dc.subject
sourcing
dc.subject
sunset clauses
dc.subject
tariff barriers
dc.subject
tariff concessions
dc.subject
tariff reduction
dc.subject
Trade Agreement
dc.subject
trade barriers
dc.subject
trade concessions
dc.subject
trade liberalization
dc.subject
trade openness
dc.subject
trade patterns
dc.subject
trade policy
dc.subject
trade reform
dc.subject
trade reforms
dc.subject
unemployment
dc.subject
unilateral tariff reduction
dc.subject
value added
dc.subject
welfare loss
dc.title
Opening Up Markets to Neighbors : Gains for Smaller Countries in South Asia
en
okr.date.disclosure
2015-01-28
okr.doctype
Publications & Research :: Brief
okr.doctype
Publications & Research
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.report
93915
okr.language.supported
en
okr.region.administrative
South Asia
okr.region.country
Mexico
okr.region.country
UNITED STATES
okr.region.geographical
North America
okr.region.geographical
South Asia
okr.topic
International Economics and Trade :: Free Trade
okr.topic
International Economics and Trade :: Trade Policy
okr.topic
Law and Development :: Trade Law
okr.topic
Macroeconomics and Economic Growth :: Economic Theory & Research
okr.topic
Private Sector Development :: Emerging Markets
okr.unit
South Asia Regional Integration (SACRI)
okr.volume
1

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