Growth Slowdowns, Middle-Income Trap, and Demographic Profile in South Asia
This paper examines how investment in human capital is critical for innovation. Analyzing the different growth-promoting factors in South Asian economies, with a focus on demographics, and factors that can help shift middle-income countries to high-income countries, it concludes that economic transition is affected by firms’ productive advantages—ability to compete with high-skilled producers, low-wage exporters—and education-based growth, which can help advance the country's technological capacity.
Author: S. P. Jayasooriya
Tags: Economics, Employment, Manufacturing, Economic Corridor, South Asia
Development of East Coast Economic Corridor and Vizag-Chennai Industrial Corridor
The East Coast Economic Corridor (ECEC)—India’s first coastal corridor—is an integrated economic development initiative that is expected to help pursue industrialization and integrate domestic companies into the global value chains of Southeast Asia and East Asia. Its development will start with Vizag–Chennai Industrial Corridor (VCIC), which covers about 800 kilometers and includes several ports and major industrial centers. This paper discusses strategies to consider when trying to improve shipping and air connectivity in the ECEC and Vizag–Chennai Industrial Corridor (VCIC). It stresses the importance of infrastructure development and regulatory reforms that facilitate increased connectivity.
Author: Pritam Banerjee
Tags: Bangladesh, Connectivity, Economic Corridor, India, Infrastructure, Regional Integration, Trade Facilitation, Transport, Development, Economic Corridor Development
Capital Market Integration in South Asia
This book discusses the potential capital market products and activities within South Asia that stakeholders in the region could explore to help the South Asian Association for Regional Cooperation (SAARC) region further realize its potential. Conventional investment, such as funds, global depository receipts, as well as promising opportunities that factor the region's demographics and socioeonomics are considered in this book, with arguments aimed toward investors and institutions. The book demonstrates both retail and institutional investor interest in this combined high-growth region by offering scope for yield, diversification and risk mitigation, maximized upside from multiple growth markets, minimized downside through low-correlation constituents, and makes the case why now is an opportune time to look at SAARC.
Author: Sourajit Aiyer
Tags: Investment, SAARC, Trade, Economic Corridor
Connecting Bangladesh: Economic Corridor Network
Economic corridors anchored on transport connectivity could significantly boost Bangladesh's economic growth. This paper presents a new set of corridors for Bangladesh – a nine-corridor comprehensive integrated multimodal economic corridor network that will enhance Bangladesh’s role as land bridge between South Asia and Southeast Asia, and between South Asia and northern Asia. These proposed corridors are designed to sustain robust economic growth over the long term by improving regional connectivity, transit, and integration, alongside trade facilitation measures.
Author: Mohuiddin Alamgir
Tags: Economic Corridor, Bangladesh, South Asia, Southeast Asia, Connectivity, Transport, Trade Facilitation
Leveraging Urbanization in South Asia: Managing Spatial Transformation for Prosperity and Livability
As South Asian economies improve, they have the potential to greatly improve their prosperity and livability for the people of the region by improving their state of urbanization. Messy and hidden urbanization that leads to slums and sprawls is the result of failure to address congestion constraints arising from rapid growth of urban populations. This book examines the state of South Asia's urbanization – it reviews gaps in markets and policies that have hindered its proper growth, and discusses key policy areas that must be undertaken, including improvement in housing provisions, infrastructure, and basic services.
Author: Peter Ellis and Mark Roberts
Tags: Economic Corridor, Urban Development, Governance, Sustainability, South Asia, Social Services
South Asia Subregional Economic Cooperation Operational Plan 2016-2025
The SASEC Operational Plan 2016–2025 embodies the strategic objectives and operational priorities of the SASEC Program for the next decade. It expands the SASEC Program's focus beyond intraregional cooperation to developing links with Southeast and East Asia, thus widening the scope of transport, trade facilitation, and energy cooperation. Economic and industrial corridor development, which will arise from improved connectivity, has been introduced as a priority initiative. SASEC 2025 is supported by a list of potential projects to be implemented in the subregion during 2016-2025, that will advance the SASEC goals of multi-modal connectivity, energy security and the growth of regional energy markets, and increased intra- and inter-regional trade. An
update to the operational plan was
published in 2020.
Author: Asian Development Bank
Tags: SASEC, ADB, Trade Facilitation, Economic Corridor, Transport, Myanmar
Scaling New Heights: Vizag-Chennai Industrial Corridor, India’s First Coastal Corridor
This book provides policymakers with a guide to understanding India’s economic corridor development strategy by examining its first coastal economic corridor, the East Coast Economic Corridor. It lays out the plan for its first phase, the Vizag–Chennai Industrial Corridor, which can help unify the country's domestic market, integrate its economy with Asia's global value chains, and support the 'Make in India' initiative to spur manufacturing through construction of world-class infrastructure supported by a major transport network, connecting urban clusters complemented by vibrant industrial zones, and encouraging a favorable and competitive environment for businesses to thrive, and facilitating efficient movement of goods and people. As a policy instrument and development strategy, economic corridors can help fast-track inclusive and sustainable economic growth, stimulate rapid industrialization and increase productivity, promote investments, and expand regional connectivity.
Author: Sabyasachi Mitra, Rana Hasan, Manoj Sharma, Hoe Yun Jeong, Manish Sharma, and Arindam Guha
Tags: Economic Corridor, India, Trade Facilitation, Transport, Employment, Economic Corridor Development
Connecting Asia: Infrastructure for Integrating South and Southeast Asia
This book contains background papers prepared for the Asian Development Bank and the Asian Development Bank Institute joint study, 'Connecting South Asia and Southeast Asia.' It emphasizes the potential contribution to growth that greater connectivity—through better transport and energy infrastructure and improved soft infrastructure, including trade facilitation—between South Asia and Southeast Asia can foster. With benefits including greater participation in global supply chains for South Asia; lower trade costs; and increase in inter- and intraregional trade, the book underscores that, at a juncture where closer regional integration can secure sustainable and inclusive growth for economies in the two regions, specific policies should be examined and considered to enable both regions to maximize gains from greater integration.
Author: Michael G. Plummer, Peter J. Morgan, Ganeshan Wignaraja, eds.
Tags: South Asia, Southeast Asia, Trade Facilitation, Transport, Energy, ADB, Economic Corridor, Bangladesh, India, Sri Lanka
Lessons for South Asia from the Industrial Cluster Development Experience of the Republic of Korea
Growth of manufacturing is crucial for economic growth and poverty reduction. This report highlights the industrial cluster development policy of the Republic of Korea, including its success factors in terms of policy implementation, and the promotion of industrial cluster development, drawing lessons that could enhance industrial growth in South Asia. It discusses how the government encouraged increase in exports through relevant policies and adapted to more technology- and knowledge-intensive industries which required innovation-driven policies. The experience outlined in the report could benefit large-scale industrial promotion in South Asia, such as the Economic Corridor Program in India.
Author: Jong-il Kim
Tags: South Asia, Industrialization, Economic Corridor, Trade, ADB, India, Bangladesh, Sri Lanka
Connecting South Asia and South East Asia
This book analyzes how closer regional connectivity and economic integration between South Asia and Southeast Asia can benefit both subregions. It aims to build a broad case for increased connectivity between the two regions and identify specific projects that have high potential to fulfill this objective. This joint study focuses on both “hard” infrastructure and associated “soft” infrastructure, including tariffs and non-tariff barriers, trade and transport facilitation, energy trading, and infrastructure investment and financing. It further provides a canvas for considering strategic cross-border infrastructure investments and policy reforms.
Author: Asian Development Bank Institute and Asian Development Bank
Tags: South Asia, Southeast Asia, Connectivity, Economic Corridor, Transport, Trade Facilitation, Bangladesh, India, Sri Lanka
Developing Economic Corridors in South Asia
This book describes key conditions for transforming transport corridors into economic corridors and establishes the rationale for developing economic corridors, and the related benefits from production value chains along those corridors. It further emphasizes the significant potential of economic corridors in South Asia, particularly those being developed under the South Asia Subregional Economic Cooperation Program. The chapters highlight the impact of trade barriers on bilateral trade and present case studies on trade facilitation in South Asia. Countries in the subregion would benefit by working closely to exploit the full economic potential of economic corridors.
Author: Asian Development Bank
Tags: Economic Corridor, South Asia, Trade Facilitation, Bangladesh, India, Sri Lanka, ADB, SASEC, Bilateral Trade, Transport
Seaborne Trade between South Asia and Southeast Asia
This Asian Development Bank Institute paper examines trade and the main ports around the Bay of Bengal to identify projects that will enable trade and contribute to improved maritime infrastructure. It also reviews the nature of trade and trade patterns, particularly through the Indian East Coast Corridor study. The paper develops further strategic options for seaport adjustment around the Bay of Bengal to support trade evolution, policy assessment, and other constraints.
Author: David Wignall, Mark Wignall
Tags: Transport, Trade, Ports, ADB, India, Economic Corridor, Bangladesh, Energy, Myanmar, Sri Lanka
Regional Transit Agreement in South Asia: An Empirical Investigation
This discussion paper published by the South Asia Watch on Trade, Economics and Environment assesses the potential gains of a sub-regional transit arrangement and the removal of other border-trade barriers, particularly the eastern South Asia sub-region (Bangladesh, Bhutan, India and Nepal). It also discusses the link between transit and trade flows, provides profiles of intra-regional transit trade and current transit arrangements in South Asia, and identifies efficient regional transit corridors using linear programming or the Data Envelopment Analysis model.
Author: Prabir De and Arvind Kumar
Tags: South Asia, Trade, Transport, Economics, Economic Corridor, SASEC, SAARC, UNESCAP, Customs, Harmonisation, Bangladesh, Bhutan, India, Nepal, Maldives, Sri Lanka
Global Production Networks and Economic Corridors: Can They Be Drivers for South Asia’s Growth and Regional Integration?
This Asian Development Bank South Asia Working Paper examines the role of regional and national economic corridors in facilitating access of South Asian countries to global production networks (GPNs), particularly East Asia and Southeast Asia. It also reviews the state of regional trade integration and examines the nature of engagement in South Asia, specifically India, with its dynamic and high growth GPNs. The paper further identifies key factors that constrain engagement of South Asian countries with East and Southeast Asia in GPN trade.
Author: Kunal Sen
Tags: South Asia, Global Production Network, Economic Corridor, ADB, Regional Integration, India, Bangladesh, Sri Lanka
A Connectivity-Driven Development Strategy for Nepal: From a Landlocked to a Land-Linked State
Transforming Nepal from a landlocked into a land-linked state, the authors argue, could be key to unlocking the country's much-awaited growth. With its strategic location between India and the People's Republic of China, a connectivity-driven development strategy could energize Nepal's lackluster post-conflict economic performance. Further, Nepal implements a multi-track approach to promoting regional cooperation and integration in connectivity with its neighbors, reinforced through participation in South Asian Association for Regional Cooperation, Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, and South Asia Subregional Economic Cooperation. By identifying ten priority projects that could further boost Nepal's connectivity, the paper also discusses how strengthening Nepal's transport, energy, and trade links could benefit the region. However, the authors also warn against “internal threats” to Nepal's development—corruption and the country's difficult political situation.
Author: Pradumna B. Rana and Binod Karmacharya
Tags: Nepal, Economic Corridor, Regional Trade, Connectivity, Development, Economic Growth, SASEC, India, Regional Cooperation, Regional Integration, SAARC, BIMSTEC, Transport, Energy, Trade
Trade and Investment Barriers Affecting International Production Networks in India
Recognizing India as an outlier in development of international production networks with the lowest participation among Asian countries, this study investigates the reason for India’s lackluster participation in production-sharing networks. Using desk work, field surveys, and interviews, an analysis is adopted with three comparator countries in the region that have been successful in production-sharing arrangements as well as industrial growth – China, Malaysia, and Thailand. It further describes foreign direct investment inflows into India, analyzes behind-the-border investment environment, and provides recommendations to improve investment climate and hasten the pace of manufacturing development in India.
Author: Anwarul Hoda and Durgesh Kumar Rai
Tags: India, Trade, Production Networks, Investment, Thailand, Manufacturing, Customs, Economic Corridor, Energy, Trade Facilitation, Transport
Asian Development Outlook 2014: Fiscal Policy for Inclusive Growth
The Asian Development Outlook, ADB’s flagship economic publication provides comprehensive macroeconomic analysis in Asia including growth projections by country and region. The Asian Development Outlook 2014 forecasts that developing Asia will grow 6.2% in 2014 and 6.4% in 2015. South Asia remains one of the slowest growing subregions—although growth is forecast to improve by 5.3% in 2014 and 5.8% in 2015.
Author: Asian Development Bank
Tags: ADB, Bangladesh, Bhutan, Economic Corridor, Energy, India, Maldives, Nepal, Sri Lanka, Transport
Impacts of Trade Facilitation Measures on Poverty and Inclusive Growth: Case Studies from Asia - A Study by the Asia-Pacific Research and Training Network on Trade
This book addresses the gap between trade facilitation and poverty reduction and contains a compilation of specific case studies that explores the linkages between trade facilitation measures and poverty. It also presents cross-country analysis that examines inequality in low- and middle-income countries. Other chapters discuss economic corridors and microfinance development as trade facilitation measures and examine access to trade facilitation by export-oriented micro, small, and medium-sized enterprises. It also explores barriers to international entrepreneurship for the vegetable business in Bangladesh. Finally, it offers a comprehensive evaluation of the effectiveness of Export Processing Zones (EPZs) on poverty reduction.
Author: Ravi Ratnayake, Rajan Sudesh Ratna, Martina Francesca Ferracane and Yann Duval
Tags: Trade Facilitation, Bangladesh, Trade, Poverty Reduction, Economic Corridor, Small and medium enterprises, India, SAARC, Customs, Pakistan
Connecting South Asia and Southeast Asia: Interim Report
This joint ADB-ADBI study focuses on how improved physical connectivity (infrastructure) and associated institutional connectivity (software) can enhance more effective economic integration between the two subregions. The report reviews economic ties, identifies issues and constraints, and explores better connectivity and closer economic integration. It also examines major developments in South Asia-Southeast Asia trade and investment, economic cooperation, role of economic corridors, and regional cooperation initiatives.
Author: ADB and ADBI
Tags: Infrastructure, Economic Integration, Regional Cooperation, Trade, Transport, Trade Facilitation, Economic Corridor, Energy
Designing and Implementing Trade Facilitation in Asia and the Pacific
This reference book was published to support the implementation of trade facilitation measures and reforms in Asia and the Pacific. It includes operational guidance on assessing the status of trade facilitation, the measures and reforms needed, how to design trade facilitation initiatives, and how to implement them at national and regional levels. The book is intended to assist policy makers, practitioners, and economists by bridging the gap between theory and practice. The revised 2013 version includes updated statistical figures and data, information on actual trade facilitation policies and practices, and the most recent research on trade facilitation.
Author: Asian Development Bank / United Nations Economic and Social Commission for Asia and the Pacific
Tags: Trade Facilitation, Regional Cooperation, Regional Integration, Trade Policy, Economic Corridor, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Revised Kyoto Convention, Customs, Customs Valuation, Bangladesh, Bhutan, India, Nepal, Maldives, Sri Lanka, Services
Regional Integration and Economic Development in South Asia
South Asian leaders have made it a priority to tackle key regional issues such as poverty, environment degradation, trade and investment barriers and food insecurity, among others. This book considers the leadership of the South Asian Association for Regional Cooperation (SAARC) and the interaction with civil society in the process of South Asian regional cooperation and integration, and discusses how the emerging urgency in the provision of regional public goods provides an excellent opportunity to add to the successes in South Asian regional integration.
Author: Sultan Hafeez / Rahman Sridhar Khatri / Hans-Peter Brunner
Tags: Economic Corridor, Regional Cooperation, Regional Integration, SAARC, SAFTA, Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka
Quantification of Benefits from Economic Cooperation in South Asia
The study examines the implication of the South Asian Free Trade Agreement (SAFTA) on South Asian countries and on the region as a whole, employing both a quantitative and qualitative assessment on the outcomes of SAFTA. The research aims to provide support in the formulation of concrete policy measures for trade to ensure greater gains for the region, while at the same time mitigating potential negative impacts. Economic and social assessments through analytical tools and rational causal chain analysis further enrich the study.
Author: Asian Development Bank / United Nations Conference on Trade and Development
Tags: Economic Corridor, Regional Cooperation, Regional Integration, SAFTA, Free Trade Agreements, Trade Facilitation, Transport, Services, SAARC, Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka
Emerging Asian Regionalism-A Partnership for Shared Prosperity
The study summarizes important issues related to Asian regionalism. Viewing regional cooperation as a necessary tool for coping with the consequences of interdependence, the book discusses several pressing issues, such as integrating production, improving financial cooperation, and managing macroeconomic interdependence to create a stable architecture for an Asia-wide cooperation.
Author: Asian Development Bank
Tags: Economic Corridor, Regional Cooperation, Regional Integration, Asia, ASEAN, SAARC, Bangladesh, Bhutan, India, Nepal, Maldives, Sri Lanka