Trade and Income Convergence in Selected South Asian Countries and Their Trading Partners

Hakro, Ahmed Nawaz, Fida, Bashir Ahmad, The Lahore Journal of Economics

Abstract

This paper analyzes trade among and the convergence of per capita income for India, Pakistan, Bangladesh, and Sri Lanka. The extent of trade and its relationship with the magnitude of income convergence is studied among these countries and their trading partners. We use intra-trade convergence and the difference-in-differences approach for the estimations. The results demonstrate that an increase in trade between the groups decreases the per capita income differential. Our results suggest that trade liberalization policies could be effective in achieving convergence. More importantly, we find that the per capita income of our source countries converged more rapidly under …

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Publication information: Article title: Trade and Income Convergence in Selected South Asian Countries and Their Trading Partners. Contributors: Hakro, Ahmed Nawaz - Author, Fida, Bashir Ahmad - Author. Journal title: The Lahore Journal of Economics. Volume: 14. Issue: 2 Publication date: Winter 2009. Page number: 49+. © Not available. Provided by ProQuest LLC. All Rights Reserved.

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