This book analyses the current state and potential of economic and financial integration in South Asia, which has emerged as one of the most dynamic regions of the world. It looks at how regional convergences and cooperation would reinforce ties amongst the diverse economies of South Asia in the changing global economic landscape.
Drawing on empirical research, the book looks at the degree of economic and financial integration in South Asia, which according to the World Bank includes the least integrated regions in the world, and explores the fundamental factors that drive integration amongst these countries. It offers important insights into the financial landscape of the region, as well as the dynamics of the interlinkages in the banking system, the stock markets, and the debt markets. The book examines the role of bilateral trade in augmenting regional economic ties, the opportunities for growth these will foster, and the major challenges and roadblocks for the leaders of the region. It also provides an overview of China’s role in South Asia’s financial integration and the interdependence of these economies for economic opportunities, macroeconomic and financial stability, jobs, sustainable growth, and inclusive development.
Detailed and insightful, this book will be of great interest to investors and regional policymakers. It will also be of interest to researchers and students of economics, public and foreign policy, finance, international relations, and South Asia studies.
List of Figures. List of Tables. Preface. Acknowledgements. List of Abbreviations. Introduction. 1. South Asian Integration: An Overview Sanjay Sehgal, Sakshi Saini and Piyush Pandey 2. Economic and Financial Integration in the South Asian Region: A Survey Sanjay Sehgal, Sakshi Saini and Piyush Pandey 3. On the Determinants of Economic Integration in SAARC Countries: A Macroeconomic Perspective Wasim Ahmad, Sanjay Sehgal and Rishman Jot Kaur Chahal 4. Factors Influencing the SAARC’s Bilateral Trade: Evidence from Spatial Econometrics Models Wasim Ahmad, Sanjay Sehgal and Mahendra Kumar Singh 5. Understanding the Business and Financial Cycles Interdependence in SAARC Countries Wasim Ahmad and Sanjay Sehgal 6. Dynamics of Stock Market Integration in the South Asian Region Sanjay Sehgal and Piyush Pandey 7. Interdependencies amongst the Short- and Long-Term Debt Markets of South Asia Sanjay Sehgal, Sakshi Saini and Piyush Pandey 8. Currency Linkages across the South Asian Economies Sanjay Sehgal and Piyush Pandey 9. Banking System Integration in South Asia Piyush Pandey, Sanjay Sehgal and Wasim Ahmad 10. Role of China in South Asian Financial Integration Sanjay Sehgal, Sakshi Saini and Piyush Pandey. References. Appendix. Index.