Regional Cooperation in Trade, Finance and Investment Among SAARC Countries: The Bangladesh Perspective

22 Pages Posted: 31 Oct 2018

See all articles by M. Kabir Hassan

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Rock-Antoine Mehanna

Wartburg College

Syed Abul Basher

East West University

Date Written: 2001

Abstract

Intra SAARC trade seems to be quite of a small order of magnitude. This might be because of normal outcome or because of unexplored trade opportunity. If the latter is the case, then increased trade within this region might be welfare improving. This study attempts to make a formal analysis of these issues, and estimates a gravity model of international trade to examine whether intra SAARC is lower or higher than what is predicted by economic model. This gives an idea about the structure of comparative advantage in the SAARC countries that help us to explain why intra SAARC trade is low and how trade among them can be increased. It also helps us to understand the possibility of trade creation and trade diversion effect resulting from SAPTA among SAARC countries. Liberalization of trade in SAARC countries offers significant gains for all the economies in the region. Efforts should be made to liberalize border trade and strengthen bilateral trade relations through separate sets of trade concessions in the general framework of SAPTA.

Keywords: SAARC, Trade, International trade, Bilateral trade, Comparative advantage, SAPTA

Suggested Citation

Hassan, M. Kabir and Mehanna, Rock-Antoine and Basher, Syed Abul, Regional Cooperation in Trade, Finance and Investment Among SAARC Countries: The Bangladesh Perspective (2001). Available at SSRN: https://ssrn.com/abstract=3263379 or http://dx.doi.org/10.2139/ssrn.3263379

M. Kabir Hassan (Contact Author)

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

Rock-Antoine Mehanna

Wartburg College

222 Ninth St. NW
Waverly, IA 50677
United States

Syed Abul Basher

East West University ( email )

Aftabnagar Main Road
Plot No. A-2
Dhaka, 1219
Bangladesh

HOME PAGE: http://https://sites.google.com/view/syedbasher

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