ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
Reader Mode
-A A +A

Reassessing Transaction Costs of Trade at the India-Bangladesh Border

In recent years, south Asia has received growing attention as a region that has successfully begun the process of regional integration. The opening of free trade in the region has led to countries in south Asia experiencing high trade costs due to inadequacy in trade and transport facilitation. South Asia's trade is constrained by poor infrastructure condition, congestion, high costs, and lengthy delays. These problems are particularly severe at border crossings, many of which pose significant barriers to trade. This paper supplements the findings of previous studies on this subject and reassesses the transaction costs for India's overland exports to Bangladesh. It finds that transaction costs of India's exports to Bangladesh have increased despite simplification of documentations at border. The paper concludes that the rent-seeking informal economy is very much deep-rooted and making the trade transaction expensive at border.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

649for India

$20for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top