Date of Award


Degree Type


University or Center

Atlanta University (AU)

Degree Name




First Advisor

Dr. Ranjit Singh


In spite of massive foreign economic aid to countries in South Asia and their efforts to improve their export earnings through export subsidies, there persists an uncertainty regarding the quantity of annual aid. This, together with instability in their export earnings, has affected the economic performance of the countries in the region. Even the protective tariff policies of these countries act as an obstacle in utilizing available technology and resources efficiently. The United Nations Conferences on Trade and Development emphasize on increased trade among developing countries. An establishment of a common market or any other form of economic groupings will encourage trade and economic co-operation between the countries of South Asia in particular and developing countries in general.

Economists like Tinbergen has visualized a possibility of an integrated market between countries of Indian subcontinent. This study attempts to explore such a possibility. The study, being explorative, is certainly conjuctural in nature. Yet an attempt has been made to demonstrate that if a regional economic grouping is worked out between countries of South Asia, it will through trade creation and trade diverting effects, succeed in realizing the following:

1. The area as a whole, through trade among countries of the area, is likely to attain self-sufficiency in foodgrains. This will, in itself, impart momentum to economic development in the region.

2. The extended size of the market will provide a better opportunity for utilizing modern methods of production. The exploitation of complimentarities in industrial production will result in a better utilization of available irreproducible resources of the region. Such complimentarities could be explored in petroleum refining, petro-chemical, fertilizer production, packaging, and agriculture.

3. Such an effort demands an intensive study of the existing policies. This should be undertaken through the establishment of regional planning and regional trade and tariff commissions.

4. This study emphasizes that a removal of tariffs, on trade between these countries and acceptance of a common agreed tariff on imports from non-member countries, will act as an incentive for rapid agricultural and industrial development in the region.

Included in

Economics Commons