Integrating Border Regions : Connectivity and Competitiveness in South Asia

Deeper regional integration can be beneficial especially for regions along international borders. It can open up new markets on opposite sides of borders and give consumers wider access to cheaper goods. This paper uses data from five contiguous districts of India, Nepal, and Bangladesh in the northeast of the subcontinent to measure the degrees of trade complementarity between districts. The paper illustrates that the regions are underexploiting the potential of intraregional commerce. Price wedges of up to 90 percent in some important consumption products along with measures of complementarity between households' production and consumption suggest the potential for relatively large gains from deeper trade integration. Furthermore, an examination of a specific supply chain of tea highlights factors that help industries scale up, aided by institutions such as an organized auction and decent physical and legal infrastructure. However, districts alike in geography but located across international boundaries face different development prospects, suggesting that gains from reduced "thickness of borders" would not accrue automatically. Much rests on developing intrinsic industry competitiveness at home, including the reform of regulatory and business practices and infrastructural bottlenecks that prevent agglomeration of local economies.

Bibliographic Details

Main Authors:	Cali, Massimiliano, Farole, Thomas, Kunaka, Charles, Wagle, Swarnim
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014-07
Subjects:	ACCESS TO MARKETS, AGGLOMERATION ECONOMIES, AGRICULTURAL PRODUCT, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, AGRICULTURAL SECTORS, AGRICULTURE, AIRPORT, ARBITRAGE, AUCTION, AUCTION SYSTEM, AUCTIONS, BORDER CROSSING, BORDER CROSSINGS, BORDER INFRASTRUCTURE, BORDER REGIONS, BOTTLENECKS, BRAND, BRIDGE, BUSINESS ENVIRONMENT, BUSINESS PRACTICES, CAR, CASH CROPS, CATCHMENT AREA, CLIMATE CHANGE, COMMERCE, COMMODITIES, COMMODITY, COMPARATIVE ADVANTAGE, COMPETITIVENESS, CONNECTIVITY, CONSUMER DEMAND, CONSUMER GOODS, CONSUMER PRICES, CONSUMERS, CONSUMPTION BASKET, CONSUMPTION DATA, CONSUMPTION PRICE, CROSS-BORDER TRANSACTIONS, CURRENCY, DATA AVAILABILITY, DEVELOPING COUNTRY, DEVELOPMENT POLICY, DIRECT BENEFICIARIES, DOMESTIC MARKET, DRIVING, DUMPING, ECONOMIC DEVELOPMENT, ECONOMIC SPECIALIZATION, ECONOMIC STRUCTURE, ECONOMIC STRUCTURES, ECONOMICS LITERATURE, ECONOMIES OF SCALE, ELASTICITIES, ELASTICITY, EXCHANGE RATE, EXCISE DUTY, EXPENDITURE, EXPORT MARKET, EXPORTS, FAIR, FARMER, FARMERS, FEASIBILITY STUDY, FOOD PRODUCTS, FOREIGN INVESTMENTS, FREE TRADE, FREE TRADE AGREEMENT, FREIGHT, GDP, GDP PER CAPITA, HIGH INCOME REGIONS, HIGHWAY, HILLY REGION, HOME COUNTRY, HOUSEHOLD EXPENDITURES, HOUSEHOLD INCOME, HUMAN DEVELOPMENT, HUMAN DEVELOPMENT INDEX, ILLITERACY, INCOME, INLAND WATERWAYS, INTELLECTUAL PROPERTY, INTENSIVE AGRICULTURE, INTERNATIONAL MARKET, INTERNATIONAL TRADE, INTRA-REGIONAL TRADE, INTRA-REGIONAL TRADE SHARES, INTRAREGIONAL TRADE, INVESTMENT CLIMATE, IRRIGATION, LACK OF INFORMATION, LACK OF INFORMATION ABOUT MARKETS, LAND TRANSPORT, LEGAL INFRASTRUCTURE, LIFE EXPECTANCY, LIVING STANDARDS, MANUFACTURING INDUSTRIES, MANUFACTURING INDUSTRY, MARKET ACCESS, MARKET INFRASTRUCTURE, MARKET INTEGRATION, MARKET PRICE, MARKET PRICES, MARKET STRUCTURES, MARKETING, MEANS OF TRANSPORT, MEAT, METROPOLITAN REGIONS, MIDDLEMEN, MILK, MOBILITY, MONOPOLY, MOTOR VEHICLES, NEW MARKETS, OUTSOURCING, PATENTS, PAYMENT SYSTEM, PERIPHERAL REGIONS, PETROLEUM PRODUCTS, POOR HOUSEHOLDS, POPULATION DENSITY, PORT FACILITIES, PORT OF ENTRY, POTENTIAL DEMAND, POVERTY DATA, POVERTY LINES, POVERTY MAPPING, POVERTY RATE, PRICE CHANGES, PRICE COMPARISONS, PRICE DIFFERENTIAL, PRICE DIFFERENTIALS, PRODUCER PRICES, PRODUCTION SIDE, PRODUCTION STRUCTURE, PRODUCTION STRUCTURES, PRODUCTION TECHNOLOGY, PROPERTY RIGHTS, RAIL, RAIL NETWORKS, RAILWAY, REAL INCOME, REGIONAL AVERAGES, REGIONAL CENTER, REGIONAL ENVIRONMENT, REGIONAL HUB, REGIONAL INTEGRATION, REGIONAL LEVEL, REGIONAL MARKET, REGIONAL MARKETS, REGIONAL OFFICES, REGIONAL STANDARDS, REPUTATION, RETAIL, RETAIL TRADE, ROAD, ROADS, ROUTE, RURAL AREAS, RURAL POPULATION, SALE, SALES, SALES AGREEMENT, SAVINGS, SCHOOLING, SINGLE MARKET, SMALL FARMERS, SPATIAL INEQUALITIES, SPATIAL INEQUALITY, SPREAD, STORAGE FACILITIES, STRUCTURAL CHANGE, SUB-REGION, SUBSTITUTION, SUBSTITUTION EFFECT, SUPPLIERS, SUPPLY CHAIN, SUPPLY CHAINS, TAX, TELECOMMUNICATIONS, TOTAL OUTPUT, TRADE BARRIERS, TRADE LIBERALIZATION, TRADE OPPORTUNITIES, TRADE OPPORTUNITY, TRADE POLICIES, TRADEMARK, TRADING BLOCS, TRAFFIC, TRAFFIC FLOWS, TRANSACTION COSTS, TRANSPORT, TRANSPORT ACTIVITIES, TRANSPORT COSTS, TRANSPORT EQUIPMENT, TRANSPORT INFRASTRUCTURE, TRANSPORT OFFICIALS, TRANSPORT SECTOR, TRANSPORTATION, TRIPS, TRUCKS, TRUE, VALUE ADDED, VEGETABLES, VEHICLE, VEHICLE OWNERS, VILLAGE DEVELOPMENT, VOLATILITY, WAGES, WAREHOUSE, WAREHOUSES, WHOLESALE TRADE, WINTER MONTHS, WORLD DEVELOPMENT INDICATORS, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2014/07/19898923/integrating-border-regions-connectivity-competitiveness-south-asia-integrating-border-regions-connectivity-competitiveness-south-asia http://hdl.handle.net/10986/19390
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