Exploring Reciprocal and Non-reciprocal Policies of Market Access for Saarc Countries
Bibliographic Data
| ID | 12322006 |
|---|---|
| Authors | Amjad Masood (0000-0002-2533-1311, Bahria University, Islamabad, Pakistan), Junaid Ahmed (0000-0001-9003-2337, Pakistan Institute of Development Economics, Islamabad, Pakistan, corresponding author), Fatima Olanike Kareem (0000-0002-5509-9517, Akademiya2063, Kigali, Rwanda) |
| Year | 2025 |
| Volume | 20 |
| Issue | 1 |
| Pages | 58-80 |
| Publication date | 2025-02-07 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of South Asian Development (JOURNAL) |
| Journal identifiers | ISSN: 0973-1741 • E-ISSN: 0973-1733 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.1177/09731741241299602 |
| OpenAlex | W4407263358 |
| Language | EN |
| References cited | 71 |
This study examines the effect of trade agreements on the bilateral export flows of South Asian Association for Regional Cooperation (SAARC) countries. For empirical estimation, we applied a structural gravity model using the Poisson pseudo-maximum likelihood estimator on annual data from 2000 to 2019. Our approach, following recent developments in gravity trade literature, incorporates domestic sales alongside international trade to fully account for multilateral resistance to trade. The findings show that free trade agreements (FTAs) play a significant role in facilitating trade among SAARC countries, particularly in exporting raw materials and intermediate goods. In contrast, extra-bloc trade largely depends on preferential market access through programmes such as the generalized system of preferences (GSPs) scheme of the European Union. However, preferential tariff schemes designed for the least developed countries have no discernible impact. Surprisingly, no trade facilitation role is evident in the exports of capital goods. Based on these findings, the study offers policy guidance on how the structure of a trade agreement impacts trade connectivity within and beyond the bloc as well as export composition. Well-designed agreements with comprehensive tariff line coverage can facilitate exports of high-value-added products. Moreover, to effectively leverage the trade benefits enabled by GSP arrangements, developing countries must enhance their institutional capacities to ensure compliance with the social, environmental and other prerequisites outlined by GSPs
Development economics · Economics · Ethnology · Geography · International trade · Market access · Political science · Reciprocal · Sociology · South asia · Global Financial Crisis and Policies · Global trade and economics · International Development and Aid
Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator
Fast Poisson estimation with high-dimensional fixed effects
Do We Really Know That the WTO Increases Trade?
The Laws of Migration
On the widely differing effects of free trade agreements
The erosion of colonial trade linkages after independence
Estimating Trade Flows
Accounting for intermediates
Gravity with Gravitas
The not‐so‐generalised effects of the Generalized System of Preferences
World Development Indicators 2013
The Log of Gravity
On trade creation and regional trade agreements
Effects of Asean-India Free Trade Agreement on agricultural trade
Impacts of international trade on global sustainable development
Are trade preferences a Panacea? The export impact of the African growth and Opportunity Act
Do nonreciprocal preferential trade agreements increase beneficiaries' exports
Trade Liberalization and the Theory of Endogenous Protection
Do free trade agreements actually increase members' international trade
| Highly cited | No |
|---|