Border Tax Distortions in South Asia: The Impact on Regional Integration

Kathuria, Sanjay; Arenas, Guillermo Carlos

doi:10.1596/978-1-4648-1294-1_ch2

Cited by 2 publications

(1 citation statement)

References 4 publications

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“…The data for para-tariffs are not available for Afghanistan, Bhutan and Maldives. According to Kathuria and Arenas (2018), Bangladesh, Pakistan and Sri Lanka maintain para-tariffs so high that they increase the nominal protection rates by almost double if para-tariffs are included with tariffs. The study highlights that for the year 2016–2017, if para-tariffs are included, then the simple average tariff rate in Bangladesh increases from 13.3% to 25.6%, and in Sri Lanka, it increases from 10.8% to 22.4%.…”

Section: Customs Environment and Trade Facilitation In South Asiamentioning

confidence: 99%

Trade Facilitation in Customs Environment: Measuring the Impact on Economic Integration in South Asia

Gandhi

Ahmed

2022

Journal of Asian Economic Integration

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Customs is a complex arena in the domain of international trade facilitation in developing regions of the world like South Asia. Despite the establishment of a free trade area in South Asia, the countries in the region still uphold a significant level of customs barriers for each other. South Asia’s intra-regional trade is just 6.1% of its total trade, making it the least unified region of the world. This study measures the impact of trade facilitation in the customs environment on regional economic integration in South Asia through intra-regional trade. The study developed its index for customs environment and incorporated it into an augmented panel gravity model to conclude that an improved customs environment significantly increases trade flows within the region. The estimates of simulation analysis illustrate that South Asia has immense potential for expanding intra-regional trade if collective regional efforts are made in trade facilitation in the customs environment. By doing so, trade flows could increase by 41–143% in various scenarios, which could not be achieved otherwise, even by completely phasing out tariffs. India is the largest country in South Asia and therefore has a detrimental part to play in achieving this. JEL Codes: C23, F10, F15, F17

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Section: Customs Environment and Trade Facilitation In South Asiamentioning

confidence: 99%

Trade Facilitation in Customs Environment: Measuring the Impact on Economic Integration in South Asia

Gandhi

Ahmed

2022

Journal of Asian Economic Integration

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South Asia's Conundrum: Turning Potential into Sustained Progress

Kathuria

2024

Asian Economic Policy Review

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South Asia has long been a region of untapped potential, lagging behind East Asia in economic progress, despite some remarkable successes. “China plus one” presents another opportunity for the region to capitalize on its demographic dividend. Focusing on Bangladesh, India, Pakistan, and Sri Lanka, this article highlights major hurdles to their sustained progress, including protectionist trade policies, inadequate human capital, and a small labor force relative to population. For Sri Lanka and Pakistan, there are the additional challenges of coping with ongoing economic crises. The analysis suggests options to regaining/sustaining macroeconomic stability, while factoring in the fiscal dimension of climate change; acting urgently to deepen global and regional trade, to seize the moment; addressing the near crisis in human capital in many countries; accelerating digital solutions to improve governance and service delivery; and using regional cooperation to help build climate resilience. The role of business elites in influencing economic policies is also discussed.

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Border Tax Distortions in South Asia: The Impact on Regional Integration

Cited by 2 publications

References 4 publications

Trade Facilitation in Customs Environment: Measuring the Impact on Economic Integration in South Asia

Trade Facilitation in Customs Environment: Measuring the Impact on Economic Integration in South Asia

South Asia's Conundrum: Turning Potential into Sustained Progress

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