SlideShare una empresa de Scribd logo
1 de 36
Descargar para leer sin conexión
 
Economic Freedom as Catalyst for Trade Enhancement:  Circularity in Causal Relations “ SAARC Governments commitment  to  Economic Freedom in South Asia” Dr. Ayub Mehar Director General (R&D) The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Seminar organized by SAARC Chamber of Commerce & Industry (SCCI) Islamabad  11 th  August, 2009
Economic Freedom in South Asia
[object Object],[object Object],[object Object],Economic Freedom: Scope and Limitations
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Indicators of Economic Freedom Cont….
[object Object],[object Object],[object Object],[object Object],[object Object],Indicators of Economic Freedom
Economic Freedom in Selected SAARC Countries  32.6 7.6 - - 16.2 - 42.2 0.5 16.3 49.5 5.1 3.5 Sri Lanka 84.8 6.7 35.9 1.3 9.8 - 49.5 0.1 72.6 11.8 14.4 18.3 China 42.0 2.5 31.4 1.8 23.8 - - 0.3 - - 5.2 7.3 Malaysia 11.1 15.9 16.2 Firms offering formal training % of firms Workforce 9.7 15.6 8.4 Average time to clear exports through customs days  Trade 17.0 22.5 7.8 ISO certification ownership % of firms Innovation 25* 6.6 10.6 Value lost due to electrical outages % of Sales  Infrastructure 3.6 19.4 24.7 Firms using banks to finance investment % of firms  Finance - 9.1 16.1 Firms with female participation in ownership % of firms  Gender - 59.2 - Firms that do not report all sales for tax purposes % of firms  Informality 0.1 0.1 1.2 Losses due to theft, robbery, vandalism and arson % of Sales Crime 57.0 47.5 85.1 Unofficial payments to public officials % of firms  Corruption 35.2 - 6.1 Time required to obtain operating license days  Permits and  licenses 4.2 3.1 1.4 Average number of times management met with tax officials 8.7 6.7 3.2 Time dealing with officials % of management time Regulations  and tax Pakistan India Bangladesh    
[object Object],[object Object],[object Object],Economic Freedom Index
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Factors of Economic Freedom Index
Economic Freedom in Selected SAARC Countries  (Rank: Out of 141 Countries)  8 17 24 15 63 United Kingdom 101 119 116 131 10 Bangladesh 7 27 4 21 42 United States 98 94 129 93 46 Sri Lanka 98 71 113 54 41 India 76 115 122 111 48 Pakistan Regulations Freedom to Trade Internationally Sound Money Legal System & Property Rights Size of Government Countries
Regional Trade in South Asia:  An overview
Merchandise Trade of SAARC Trade Bloc   $ Millions 2 28268000 470626 21377 11,155 10,222 2007 2 24553000 390816 18206 9,097 9,109 2006 2 21350000 326958 14685 7,419 7,266 2005 1 18793000 245950 11902 6,072 5,830 2004 1 13183000 144826 5821 3,141 2,680 2000 1 10448000 106426 4266 2242 2024 1995 Total Imports Exports % share of SAARC total trade with world in World's total Trade World's total Trade SAARC Total Trade with world SAARC Trade Within Bloc  Year
Regional Trade as % of total bloc exports 5 5 6 6 4 4 4 1985 SAARC 9 9 8 7 6 8 3 1985 ECO 25 25 25 25 23 25 20 1967 ASEAN 51 54 56 56 56 46 42 1994 NAFTA 68 67 67 68 67 66 68 1957 European Union 2007 2006 2005 2004 2000 1995 1990 Year of creation   
Regional Trade as % of world exports 1 1 1 1 1 1 1 1985 SAARC 2 2 2 2 1 1 1 1985 ECO 6 7 6 6 7 6 5 1967 ASEAN 13 14 14 15 19 17 17 1994 NAFTA 39 38 39 41 38 38 40 1957 European Union 2007 2006 2005 2004 2000 1995 1990 Year Of creation   
Indicators of Trade Liberalization and Barriers
Enabling Trade Index Source: World Economic Forum Scores (1-7) 4.4 4.2 4.8 3.2 Capital controls 5.3 5.7 5.7 5.4 Business impact of rules on FDI 4.2 4.2 4.8 3.7 Ease of hiring foreign labor 4.6 4.4 3.8 3.1 Property rights Regulatory environment 8 8 9 6 Documents for Exports  (No. of documents required to export) 9 6 8 8 Documents for imports  (No. of documents required to import) Import - Export procedures 3.7 3.7 3.6 2.4 Burden of Custom Procedures 4.0 6.2 10.4 6.7 Complexity of tariffs  (average of the variance of tariffs) 34.1 20.3 30.9 48.0 Non-tariff barriers  (Index: average of two non-tariff barriers related variables) 10.9 8.2 11.5 13.0 Tariff Barriers  (Trade-weighted average tariff rate) Market Access India Sri Lanka Pakistan Bangladesh Indicators
Enabling Trade Index (Rank out of 121)   Source: World Economic Forum 75 79 63 112 Capital controls 54 24 25 50 Business impact of rules on FDI 98 93 53 113 Ease of hiring foreign labor 51 56 83 111 Property rights Regulatory environment 83 83 98 42 Documents for Exports 85 30 66 66 Documents for imports Import - Export procedures 65 64 76 119 Burden of Custom Procedures 107 59 48 27 Complexity of tariffs 48 31 43 76 Non-tariff barriers 94 78 95 108 Tariff Barriers Market Access India Sri Lanka Pakistan Bangladesh Indicators
Financial Development Index Score (1-7)  2.0 2.0 Domestic financial sector liberalization 39.6 23.8 Cost of enforcing contracts (as a % of debt) 1420 880 Time to enforce a contract (No. of days) 46 47 Number of procedures to enforce a contract 3.9 2.4 Centralization of economic policymaking 2.9 3.0 Burden of government regulation India Pakistan Indicators
Financial Development Index (Rank out of 52) 38 49 Domestic financial sector liberalization 46 27 Cost of enforcing contracts 51 46 Time to enforce a contract 48 49 Number of procedures to enforce a contract 18 44 Centralization of economic policymaking 32 31 Burden of government regulation India Pakistan Indicators
Tariff Barriers 5.9 14.6 15.2 22.0 13.0 14.5 26.1 weighted mean tariff 10.5 14.9 12.5 22.2 16.0 17.5 15.5 Simple mean tariff Manufactured products % 9.5 8.8 9.9 18.0 17.0 37.7 8.8 weighted mean tariff 15.2 14.1 12.5 17.8 24.0 42.6 15.6 Simple mean tariff Primary Products % 1.5 0.5 0.6 0 0 0 0.1 Share of tariff lines with Specific rates 23.1 43.2 16.8 72.3 16.0 61.6 41.5 Share of tariff lines with international peaks 7.0 12.2 13.4 20.5 15.0 21.5 19.9 Weighted mean  tariff 11.0 14.8 12.5 21.3 17.0 22.2 15.5 Simple mean tariff 29.6 52.2 26.0 37.0 50.0 - 161.7 Simple  mean  bound  rate 36.8 44.8 99.4 97.1 74.0 - 15.1 Binding  Coverage All Products % Sri Lanka Pakistan Nepal  Maldives India Bhutan Bangladesh  
Causality Analysis
Circularity in Relations Factors of Economic Freedom Trade Enhancement & Liberalization Trade Competitiveness
Causal Relations Dependent variable: Goods Market Efficiency Legal System & Property Rights Goods Market Efficiency Size of Government 4.7 4.9 T-Statistics -0.10 0.86 Coefficient of Correlation Size of Government Legal System & Property Rights Explanatory Variables
Causal Relations Dependent variable: Labour Market Efficiency   Labour Market Efficiency  Legal System & Property Rights Labour Market Regulations Freedom to Trade Internationally 5.66 8.47 3.21 T-Statistics 0.46 0.58 0.64 Coefficient of Correlation Freedom to Trade Internationally Labour Market Regulations Legal System & Property Rights Explanatory   Variables
Causal Relations Dependent variable: Financial Market Sophistication   Legal System & Property Rights Financial Market Sophistication Freedom to Trade Internationally Credit Market Regulations Sound Money 7.87 8.48 5.39 9.15 T-Statistics 0.49 0.46 0.60 0.81 Coefficient of Correlation Sound Money Credit Market Regulations Freedom to Trade Internationally Legal System & Property Rights Explanatory   Variables
Causal Relations Dependent variable: Technology Readiness   Freedom to Trade Internationally Technology Readiness 8.82 T-Statistics 0.55 Coefficient of Correlation Freedom to Trade Internationally Explanatory   Variables
Causal Relations Dependent variable: Innovation   Soft Business Regulations Innovation Sound Money 5.27 8.92 T-Statistics 0.42 0.74 Coefficient of Correlation Sound Money Soft Business Regulations Explanatory   Variables
Causal Relations Dependent variable: Institutional Governance   Size of Government Institutional Governance 5.08 T-Statistics -0.20 Coefficient of Correlation Size of Government Explanatory   Variables
Causal Relations Dependent variable: Business Sophistication   Soft Business Regulations Business Sophistication Sound Money 8.92 3.93 T-Statistics 0.74 0.74 Coefficient of Correlation Sound Money Soft Business Regulations Explanatory   Variables
Business Competitiveness Export of Goods Market Size Simultaneity in International Trade Import of Services  Import of Goods GDP Institutional Governance Innovations Export of Services
Estimated Parameters: Regression Results     3.881 15463.32 BCI     2.99 7558.888 MSIZ     13.817 0.022 GDP 161.216 0.8482 -5.894 -80974.4 Constant Import of Services (IMS)     -3.123 -32215.089 INST     6.327 66902.79 INOV 32.641 0.4239 -3.604 -75101.1 Constant Export of Services (EXS)     28.093 0.594 EXG     33.102 0.099 GDP 3859.103 0.989 1.882 6174.282 Constant Import of Goods (IMG)     6.586 181713 BCI 43.379 0.3301 -5.609 -664223.26 Constant Export of Goods (EXG) F-Statistics Adusted R-square T-Statistics Coefficients Independent Variables Dependent Variable
Conclusion
[object Object],[object Object],[object Object],[object Object],Causality Analysis
Trade Barriers in South Asia ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Dependency of Trade Relations on  Freedom & Competitiveness
Thank You....

Más contenido relacionado

La actualidad más candente

QNBFS Daily Market Report July 9, 2017
QNBFS Daily Market Report July 9, 2017QNBFS Daily Market Report July 9, 2017
QNBFS Daily Market Report July 9, 2017QNB Group
 
3 December Daily market report
3 December Daily market report 3 December Daily market report
3 December Daily market report QNB Group
 
BSEF 2013 invest Giorgi_Pertaia
BSEF 2013 invest Giorgi_PertaiaBSEF 2013 invest Giorgi_Pertaia
BSEF 2013 invest Giorgi_Pertaiablackseaforum
 
3 June Daily market report
3 June Daily market report 3 June Daily market report
3 June Daily market report QNB Group
 
FDI in India - An Analysis
FDI in India - An AnalysisFDI in India - An Analysis
FDI in India - An AnalysisPeriasamy K
 
23 January Daily market report
23 January Daily market report 23 January Daily market report
23 January Daily market report QNB Group
 
Trade stimulates economic growth as well as create employment
Trade stimulates economic growth as well as create employmentTrade stimulates economic growth as well as create employment
Trade stimulates economic growth as well as create employmentAlisha Khan
 
FDI in INDIA & CHINA
FDI in INDIA & CHINAFDI in INDIA & CHINA
FDI in INDIA & CHINADar Javid
 
10 February Daily market report
10 February Daily market report 10 February Daily market report
10 February Daily market report QNB Group
 
Foreign Direct Investment in India (FDI)
Foreign Direct Investment in India (FDI)Foreign Direct Investment in India (FDI)
Foreign Direct Investment in India (FDI)Ameya Gandhi
 

La actualidad más candente (15)

QNBFS Daily Market Report July 9, 2017
QNBFS Daily Market Report July 9, 2017QNBFS Daily Market Report July 9, 2017
QNBFS Daily Market Report July 9, 2017
 
3 December Daily market report
3 December Daily market report 3 December Daily market report
3 December Daily market report
 
FDI
FDIFDI
FDI
 
Equity Research Report 09 April 2018 Ways2Capital
Equity Research Report 09 April  2018 Ways2CapitalEquity Research Report 09 April  2018 Ways2Capital
Equity Research Report 09 April 2018 Ways2Capital
 
BSEF 2013 invest Giorgi_Pertaia
BSEF 2013 invest Giorgi_PertaiaBSEF 2013 invest Giorgi_Pertaia
BSEF 2013 invest Giorgi_Pertaia
 
Gvc
GvcGvc
Gvc
 
3 June Daily market report
3 June Daily market report 3 June Daily market report
3 June Daily market report
 
FDI in India - An Analysis
FDI in India - An AnalysisFDI in India - An Analysis
FDI in India - An Analysis
 
Fuente India Advantage
Fuente India AdvantageFuente India Advantage
Fuente India Advantage
 
23 January Daily market report
23 January Daily market report 23 January Daily market report
23 January Daily market report
 
Trade stimulates economic growth as well as create employment
Trade stimulates economic growth as well as create employmentTrade stimulates economic growth as well as create employment
Trade stimulates economic growth as well as create employment
 
FDI in INDIA & CHINA
FDI in INDIA & CHINAFDI in INDIA & CHINA
FDI in INDIA & CHINA
 
10 February Daily market report
10 February Daily market report 10 February Daily market report
10 February Daily market report
 
Fdi in india
Fdi in  indiaFdi in  india
Fdi in india
 
Foreign Direct Investment in India (FDI)
Foreign Direct Investment in India (FDI)Foreign Direct Investment in India (FDI)
Foreign Direct Investment in India (FDI)
 

Destacado

CMS Meaningful Use rule announcement 7-13-2010
CMS Meaningful Use rule announcement 7-13-2010CMS Meaningful Use rule announcement 7-13-2010
CMS Meaningful Use rule announcement 7-13-2010e-Patient Dave deBronkart
 
1 Er Informe De ObservacióN Electoral Elecciones Presidenciales 2008
1 Er Informe De ObservacióN Electoral Elecciones Presidenciales 20081 Er Informe De ObservacióN Electoral Elecciones Presidenciales 2008
1 Er Informe De ObservacióN Electoral Elecciones Presidenciales 2008Observatorio Politico Dominicano
 
Mutual Funds Learning Center
Mutual Funds   Learning CenterMutual Funds   Learning Center
Mutual Funds Learning CenterSumant Palwankar
 
Googleizing Your Educational Workflow 2014
Googleizing Your Educational Workflow 2014Googleizing Your Educational Workflow 2014
Googleizing Your Educational Workflow 2014Martin Cisneros
 
Free eBook - Beyond Fun: Serious Games and Media
Free eBook - Beyond Fun: Serious Games and MediaFree eBook - Beyond Fun: Serious Games and Media
Free eBook - Beyond Fun: Serious Games and MediaAyman Sarhan
 

Destacado (7)

CMS Meaningful Use rule announcement 7-13-2010
CMS Meaningful Use rule announcement 7-13-2010CMS Meaningful Use rule announcement 7-13-2010
CMS Meaningful Use rule announcement 7-13-2010
 
1 Er Informe De ObservacióN Electoral Elecciones Presidenciales 2008
1 Er Informe De ObservacióN Electoral Elecciones Presidenciales 20081 Er Informe De ObservacióN Electoral Elecciones Presidenciales 2008
1 Er Informe De ObservacióN Electoral Elecciones Presidenciales 2008
 
Mutual Funds Learning Center
Mutual Funds   Learning CenterMutual Funds   Learning Center
Mutual Funds Learning Center
 
Forex India
Forex IndiaForex India
Forex India
 
Googleizing Your Educational Workflow 2014
Googleizing Your Educational Workflow 2014Googleizing Your Educational Workflow 2014
Googleizing Your Educational Workflow 2014
 
Free eBook - Beyond Fun: Serious Games and Media
Free eBook - Beyond Fun: Serious Games and MediaFree eBook - Beyond Fun: Serious Games and Media
Free eBook - Beyond Fun: Serious Games and Media
 
Fronteira bolivia e paraguai
Fronteira bolivia e paraguaiFronteira bolivia e paraguai
Fronteira bolivia e paraguai
 

Similar a Economic Freedom Final

Karachi, Economic Freedom & Business Competitiveness
Karachi, Economic Freedom & Business CompetitivenessKarachi, Economic Freedom & Business Competitiveness
Karachi, Economic Freedom & Business Competitivenessayubmehar
 
Fnf lebanon presentation v1
Fnf lebanon presentation v1Fnf lebanon presentation v1
Fnf lebanon presentation v1Yusuf Mansur
 
Market Access Paper - Final 2
Market Access Paper - Final 2Market Access Paper - Final 2
Market Access Paper - Final 2Evelyn Teoh
 
Projectppts
ProjectpptsProjectppts
Projectpptssavisca
 
St Lucia: National Export Strategy Consultation - Trade Facilitation
St Lucia: National Export Strategy Consultation - Trade FacilitationSt Lucia: National Export Strategy Consultation - Trade Facilitation
St Lucia: National Export Strategy Consultation - Trade FacilitationSubhrendu Chatterji
 
Common Stock Market In South Asia
Common Stock Market In South AsiaCommon Stock Market In South Asia
Common Stock Market In South Asiaayubmehar
 
Presentation Regional Connectivity (Final)
Presentation Regional Connectivity  (Final)Presentation Regional Connectivity  (Final)
Presentation Regional Connectivity (Final)ayubmehar
 
[Final] vietnam white paper_2019 (web)
[Final] vietnam white paper_2019 (web)[Final] vietnam white paper_2019 (web)
[Final] vietnam white paper_2019 (web)Thuy Nguyen
 
Business Vulnerability Index - Q3 2014_November
Business Vulnerability Index - Q3 2014_NovemberBusiness Vulnerability Index - Q3 2014_November
Business Vulnerability Index - Q3 2014_NovemberKevin Vlietman
 
Securities in Focus - Alex Kech
Securities in Focus - Alex KechSecurities in Focus - Alex Kech
Securities in Focus - Alex KechSWIFT
 
QNBFS Weekly Market Report April 27, 2017
QNBFS Weekly Market Report April 27, 2017QNBFS Weekly Market Report April 27, 2017
QNBFS Weekly Market Report April 27, 2017QNB Group
 
IPRs in Free Trade Agreements Index 2016
IPRs in Free Trade Agreements Index 2016IPRs in Free Trade Agreements Index 2016
IPRs in Free Trade Agreements Index 2016T. Alexander Puutio
 
Final Ethiopia reportweb regarding the ethiopian economy and finance during.pdf
Final Ethiopia  reportweb regarding the ethiopian economy and finance during.pdfFinal Ethiopia  reportweb regarding the ethiopian economy and finance during.pdf
Final Ethiopia reportweb regarding the ethiopian economy and finance during.pdfKIBRU12
 
2015 DSM Survey summary
2015 DSM Survey summary2015 DSM Survey summary
2015 DSM Survey summaryManuel MORENO
 

Similar a Economic Freedom Final (20)

Karachi, Economic Freedom & Business Competitiveness
Karachi, Economic Freedom & Business CompetitivenessKarachi, Economic Freedom & Business Competitiveness
Karachi, Economic Freedom & Business Competitiveness
 
The jordanian economy in recent rankings – a comparison
The jordanian economy in recent rankings – a comparisonThe jordanian economy in recent rankings – a comparison
The jordanian economy in recent rankings – a comparison
 
Presentation by Dr. Balraj Kistow on analysis of WEF GCR 2016-2017
Presentation by Dr. Balraj Kistow on analysis of WEF GCR 2016-2017Presentation by Dr. Balraj Kistow on analysis of WEF GCR 2016-2017
Presentation by Dr. Balraj Kistow on analysis of WEF GCR 2016-2017
 
Fta Trainer
Fta TrainerFta Trainer
Fta Trainer
 
Briics Powerpoint
Briics  PowerpointBriics  Powerpoint
Briics Powerpoint
 
Fnf lebanon presentation v1
Fnf lebanon presentation v1Fnf lebanon presentation v1
Fnf lebanon presentation v1
 
Market Access Paper - Final 2
Market Access Paper - Final 2Market Access Paper - Final 2
Market Access Paper - Final 2
 
Projectppts
ProjectpptsProjectppts
Projectppts
 
St Lucia: National Export Strategy Consultation - Trade Facilitation
St Lucia: National Export Strategy Consultation - Trade FacilitationSt Lucia: National Export Strategy Consultation - Trade Facilitation
St Lucia: National Export Strategy Consultation - Trade Facilitation
 
Common Stock Market In South Asia
Common Stock Market In South AsiaCommon Stock Market In South Asia
Common Stock Market In South Asia
 
Presentation Regional Connectivity (Final)
Presentation Regional Connectivity  (Final)Presentation Regional Connectivity  (Final)
Presentation Regional Connectivity (Final)
 
[Final] vietnam white paper_2019 (web)
[Final] vietnam white paper_2019 (web)[Final] vietnam white paper_2019 (web)
[Final] vietnam white paper_2019 (web)
 
Business Vulnerability Index - Q3 2014_November
Business Vulnerability Index - Q3 2014_NovemberBusiness Vulnerability Index - Q3 2014_November
Business Vulnerability Index - Q3 2014_November
 
One's Loss is Another's Gain
One's Loss is Another's GainOne's Loss is Another's Gain
One's Loss is Another's Gain
 
Securities in Focus - Alex Kech
Securities in Focus - Alex KechSecurities in Focus - Alex Kech
Securities in Focus - Alex Kech
 
Global parliamentary-network-oct2014 g20-trade
Global parliamentary-network-oct2014 g20-tradeGlobal parliamentary-network-oct2014 g20-trade
Global parliamentary-network-oct2014 g20-trade
 
QNBFS Weekly Market Report April 27, 2017
QNBFS Weekly Market Report April 27, 2017QNBFS Weekly Market Report April 27, 2017
QNBFS Weekly Market Report April 27, 2017
 
IPRs in Free Trade Agreements Index 2016
IPRs in Free Trade Agreements Index 2016IPRs in Free Trade Agreements Index 2016
IPRs in Free Trade Agreements Index 2016
 
Final Ethiopia reportweb regarding the ethiopian economy and finance during.pdf
Final Ethiopia  reportweb regarding the ethiopian economy and finance during.pdfFinal Ethiopia  reportweb regarding the ethiopian economy and finance during.pdf
Final Ethiopia reportweb regarding the ethiopian economy and finance during.pdf
 
2015 DSM Survey summary
2015 DSM Survey summary2015 DSM Survey summary
2015 DSM Survey summary
 

Economic Freedom Final

  • 1.  
  • 2. Economic Freedom as Catalyst for Trade Enhancement: Circularity in Causal Relations “ SAARC Governments commitment to Economic Freedom in South Asia” Dr. Ayub Mehar Director General (R&D) The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Seminar organized by SAARC Chamber of Commerce & Industry (SCCI) Islamabad 11 th August, 2009
  • 3. Economic Freedom in South Asia
  • 4.
  • 5.
  • 6.
  • 7. Economic Freedom in Selected SAARC Countries 32.6 7.6 - - 16.2 - 42.2 0.5 16.3 49.5 5.1 3.5 Sri Lanka 84.8 6.7 35.9 1.3 9.8 - 49.5 0.1 72.6 11.8 14.4 18.3 China 42.0 2.5 31.4 1.8 23.8 - - 0.3 - - 5.2 7.3 Malaysia 11.1 15.9 16.2 Firms offering formal training % of firms Workforce 9.7 15.6 8.4 Average time to clear exports through customs days Trade 17.0 22.5 7.8 ISO certification ownership % of firms Innovation 25* 6.6 10.6 Value lost due to electrical outages % of Sales Infrastructure 3.6 19.4 24.7 Firms using banks to finance investment % of firms Finance - 9.1 16.1 Firms with female participation in ownership % of firms Gender - 59.2 - Firms that do not report all sales for tax purposes % of firms Informality 0.1 0.1 1.2 Losses due to theft, robbery, vandalism and arson % of Sales Crime 57.0 47.5 85.1 Unofficial payments to public officials % of firms Corruption 35.2 - 6.1 Time required to obtain operating license days Permits and licenses 4.2 3.1 1.4 Average number of times management met with tax officials 8.7 6.7 3.2 Time dealing with officials % of management time Regulations and tax Pakistan India Bangladesh    
  • 8.
  • 9.
  • 10. Economic Freedom in Selected SAARC Countries (Rank: Out of 141 Countries) 8 17 24 15 63 United Kingdom 101 119 116 131 10 Bangladesh 7 27 4 21 42 United States 98 94 129 93 46 Sri Lanka 98 71 113 54 41 India 76 115 122 111 48 Pakistan Regulations Freedom to Trade Internationally Sound Money Legal System & Property Rights Size of Government Countries
  • 11. Regional Trade in South Asia: An overview
  • 12. Merchandise Trade of SAARC Trade Bloc $ Millions 2 28268000 470626 21377 11,155 10,222 2007 2 24553000 390816 18206 9,097 9,109 2006 2 21350000 326958 14685 7,419 7,266 2005 1 18793000 245950 11902 6,072 5,830 2004 1 13183000 144826 5821 3,141 2,680 2000 1 10448000 106426 4266 2242 2024 1995 Total Imports Exports % share of SAARC total trade with world in World's total Trade World's total Trade SAARC Total Trade with world SAARC Trade Within Bloc Year
  • 13. Regional Trade as % of total bloc exports 5 5 6 6 4 4 4 1985 SAARC 9 9 8 7 6 8 3 1985 ECO 25 25 25 25 23 25 20 1967 ASEAN 51 54 56 56 56 46 42 1994 NAFTA 68 67 67 68 67 66 68 1957 European Union 2007 2006 2005 2004 2000 1995 1990 Year of creation  
  • 14. Regional Trade as % of world exports 1 1 1 1 1 1 1 1985 SAARC 2 2 2 2 1 1 1 1985 ECO 6 7 6 6 7 6 5 1967 ASEAN 13 14 14 15 19 17 17 1994 NAFTA 39 38 39 41 38 38 40 1957 European Union 2007 2006 2005 2004 2000 1995 1990 Year Of creation  
  • 15. Indicators of Trade Liberalization and Barriers
  • 16. Enabling Trade Index Source: World Economic Forum Scores (1-7) 4.4 4.2 4.8 3.2 Capital controls 5.3 5.7 5.7 5.4 Business impact of rules on FDI 4.2 4.2 4.8 3.7 Ease of hiring foreign labor 4.6 4.4 3.8 3.1 Property rights Regulatory environment 8 8 9 6 Documents for Exports (No. of documents required to export) 9 6 8 8 Documents for imports (No. of documents required to import) Import - Export procedures 3.7 3.7 3.6 2.4 Burden of Custom Procedures 4.0 6.2 10.4 6.7 Complexity of tariffs (average of the variance of tariffs) 34.1 20.3 30.9 48.0 Non-tariff barriers (Index: average of two non-tariff barriers related variables) 10.9 8.2 11.5 13.0 Tariff Barriers (Trade-weighted average tariff rate) Market Access India Sri Lanka Pakistan Bangladesh Indicators
  • 17. Enabling Trade Index (Rank out of 121) Source: World Economic Forum 75 79 63 112 Capital controls 54 24 25 50 Business impact of rules on FDI 98 93 53 113 Ease of hiring foreign labor 51 56 83 111 Property rights Regulatory environment 83 83 98 42 Documents for Exports 85 30 66 66 Documents for imports Import - Export procedures 65 64 76 119 Burden of Custom Procedures 107 59 48 27 Complexity of tariffs 48 31 43 76 Non-tariff barriers 94 78 95 108 Tariff Barriers Market Access India Sri Lanka Pakistan Bangladesh Indicators
  • 18. Financial Development Index Score (1-7) 2.0 2.0 Domestic financial sector liberalization 39.6 23.8 Cost of enforcing contracts (as a % of debt) 1420 880 Time to enforce a contract (No. of days) 46 47 Number of procedures to enforce a contract 3.9 2.4 Centralization of economic policymaking 2.9 3.0 Burden of government regulation India Pakistan Indicators
  • 19. Financial Development Index (Rank out of 52) 38 49 Domestic financial sector liberalization 46 27 Cost of enforcing contracts 51 46 Time to enforce a contract 48 49 Number of procedures to enforce a contract 18 44 Centralization of economic policymaking 32 31 Burden of government regulation India Pakistan Indicators
  • 20. Tariff Barriers 5.9 14.6 15.2 22.0 13.0 14.5 26.1 weighted mean tariff 10.5 14.9 12.5 22.2 16.0 17.5 15.5 Simple mean tariff Manufactured products % 9.5 8.8 9.9 18.0 17.0 37.7 8.8 weighted mean tariff 15.2 14.1 12.5 17.8 24.0 42.6 15.6 Simple mean tariff Primary Products % 1.5 0.5 0.6 0 0 0 0.1 Share of tariff lines with Specific rates 23.1 43.2 16.8 72.3 16.0 61.6 41.5 Share of tariff lines with international peaks 7.0 12.2 13.4 20.5 15.0 21.5 19.9 Weighted mean tariff 11.0 14.8 12.5 21.3 17.0 22.2 15.5 Simple mean tariff 29.6 52.2 26.0 37.0 50.0 - 161.7 Simple mean bound rate 36.8 44.8 99.4 97.1 74.0 - 15.1 Binding Coverage All Products % Sri Lanka Pakistan Nepal Maldives India Bhutan Bangladesh  
  • 22. Circularity in Relations Factors of Economic Freedom Trade Enhancement & Liberalization Trade Competitiveness
  • 23. Causal Relations Dependent variable: Goods Market Efficiency Legal System & Property Rights Goods Market Efficiency Size of Government 4.7 4.9 T-Statistics -0.10 0.86 Coefficient of Correlation Size of Government Legal System & Property Rights Explanatory Variables
  • 24. Causal Relations Dependent variable: Labour Market Efficiency Labour Market Efficiency Legal System & Property Rights Labour Market Regulations Freedom to Trade Internationally 5.66 8.47 3.21 T-Statistics 0.46 0.58 0.64 Coefficient of Correlation Freedom to Trade Internationally Labour Market Regulations Legal System & Property Rights Explanatory Variables
  • 25. Causal Relations Dependent variable: Financial Market Sophistication Legal System & Property Rights Financial Market Sophistication Freedom to Trade Internationally Credit Market Regulations Sound Money 7.87 8.48 5.39 9.15 T-Statistics 0.49 0.46 0.60 0.81 Coefficient of Correlation Sound Money Credit Market Regulations Freedom to Trade Internationally Legal System & Property Rights Explanatory Variables
  • 26. Causal Relations Dependent variable: Technology Readiness Freedom to Trade Internationally Technology Readiness 8.82 T-Statistics 0.55 Coefficient of Correlation Freedom to Trade Internationally Explanatory Variables
  • 27. Causal Relations Dependent variable: Innovation Soft Business Regulations Innovation Sound Money 5.27 8.92 T-Statistics 0.42 0.74 Coefficient of Correlation Sound Money Soft Business Regulations Explanatory Variables
  • 28. Causal Relations Dependent variable: Institutional Governance Size of Government Institutional Governance 5.08 T-Statistics -0.20 Coefficient of Correlation Size of Government Explanatory Variables
  • 29. Causal Relations Dependent variable: Business Sophistication Soft Business Regulations Business Sophistication Sound Money 8.92 3.93 T-Statistics 0.74 0.74 Coefficient of Correlation Sound Money Soft Business Regulations Explanatory Variables
  • 30. Business Competitiveness Export of Goods Market Size Simultaneity in International Trade Import of Services Import of Goods GDP Institutional Governance Innovations Export of Services
  • 31. Estimated Parameters: Regression Results     3.881 15463.32 BCI     2.99 7558.888 MSIZ     13.817 0.022 GDP 161.216 0.8482 -5.894 -80974.4 Constant Import of Services (IMS)     -3.123 -32215.089 INST     6.327 66902.79 INOV 32.641 0.4239 -3.604 -75101.1 Constant Export of Services (EXS)     28.093 0.594 EXG     33.102 0.099 GDP 3859.103 0.989 1.882 6174.282 Constant Import of Goods (IMG)     6.586 181713 BCI 43.379 0.3301 -5.609 -664223.26 Constant Export of Goods (EXG) F-Statistics Adusted R-square T-Statistics Coefficients Independent Variables Dependent Variable
  • 33.
  • 34.
  • 35.