Determinants and Prospects of Intra-regional Trade in the Bay of Bengal and the Andaman Sea (BoBAS) Rim Countries of South Asia: A Gravity Model Simulation ApproachMohammad Imran Hossain South Asian Survey, 2018, vol. 25, issue 1-2, 27-58 Abstract: Bangladesh, India and Sri Lanka are three important South Asian economies that lie in the Bay of Bengal and the Andaman Sea (BoBAS) rim region. Considering intra-regional trade, these countries are loosely economically integrated, although they have a large potential for sub-regional trade grains. This study examines the determinants and potential of intra-regional trade among these countries. In the beginning, the study estimated the gravity model of trade with a panel random effects estimation for a set of data from 1991 to 2012. Later it investigated trade potential among the countries by a simulation approach that is based on the prior findings of the gravity estimation. The results show that major determinants of intra-regional trade in these countries are size of the domestic market, infrastructure, economic openness, real exchange rate and distance. Countries in the sub-region have high trade prospects and they have not explored the maximum potential of intra-regional trade yet. Keywords: Determinants; prospects; intra-regional trade; gravity model; BoBAS rim countries in South Asia; simulation; panel data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:soasur:v:25:y:2018:i:1-2:p:27-58 Access Statistics for this article More articles in South Asian Survey |
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