Narrow Results

This study attempts to empirically test whether the economic policy uncertainty (EPU) in developed economies affects stock market integration across developed and developing countries. We find that the correlations appear to be time-varying and are being influenced by financial crises. The EPU of the developed economies has a negative impact on their stock market interdependence with Pakistan, but a positive impact on stock market correlations between India and the US, India and the UK, Bangladesh and the EU, Sri Lanka and the EU, and no impact on correlations between India and the EU, Bangladesh, and the US. Additional robustness tests reveal that the global financial crisis (GFC) has a substantial influence on all stock market correlation pairs, apart from any pairs with India, whereas the Asian financial crisis (AFC) only has a significant impact on the Sri Lanka–EU relationship. Finally, the study suggests that the EPU in the US, UK and EU has a great influence on the interdependence of the stock markets between South Asian Association for Regional Cooperation (SAARC) and developed nations.

Economic growth necessitates the development of human capital and education. It plays a critical and necessary role in the formulation of income distribution policies and alleviating poverty. This study investigates the relationship through ordinary least square (OLS), fully-modified OLS and dynamic OLS models using panel data from the South Asian Association for Regional Cooperation (SAARC) countries from 1990 to 2018. According to the findings, imbalance plays an important role in influencing poverty and concludes that the government should embrace procedures that help improve pay distribution to reduce poverty at the strategy level. Furthermore, the findings state that a bi-directional Granger causality exists between schooling and poverty. In terms of strategy, SAARC countries should continue to increase the proportion of sustainable energy used for financial development, thereby decreasing the use of fossil energy for environmental improvements. Additionally, this study shows that the association of pay disparity hoses the positive effect of financial development on poverty, and it supports the contention that the degree of imbalance reduces the impact of comprehensiveness. Pay disparity is now a critical determinant of poverty.

The lofty ideals penned by the heads of the South Asian states at the birth of the South Asian Association for Regional Cooperation (SAARC) reflect a vision for promoting mutual trust and understanding in South Asia. But the member states have fallen into the intricate web of power balancing games, fluctuating economic growth and volatile ethnic and religious conditions that has marred the potential gains from regionalism. In such a scenario, while SAARCs snail-like progress continues without any remarkable achievements, there has been a rise of new regional organizations that has not only renewed our attention towards economic liberalization and the benefits accrued from multilateral economic cooperation but has also put into question the fundamentals of regionalism. The paper situates regionalism in acts of cooperation that are not isolated and discrete from each other but rather form a pattern of interconnecting expectations about the future of the alliance and the assumptions on legitimate activities. The paper argues that regionalism is a multi-faceted task and involves political harmony, economic interdependence and common identity as the three pillars. But regionalism in South Asia encourages economic interdependence and proscribes political integration and common values and norms. As a result, the attempts at regionalism in South Asia are conceptually narrow, limited in agenda and inadequate to address the issues of regional peace and security.

This study has set to compare the usefulness of the regional integration efforts taken by two important economic blocs, SAARC and ASEAN, within the Asian continent to reduce the regional income inequality. Therefore, the existence of income convergence (or divergence) among the SAARC and ASEAN countries is the aim of this study. To investigate whether (or not) there exists income convergence across the SAARC and ASEAN blocs over the period of 1970-2017, $\beta$-convergence, σ-convergence and club convergence estimation methods have been applied. The results confirm the convergence of income across the ASEAN member countries, which is absent for the SAARC member countries at the intra-regional level. Although we considered all countries of the SAARC and ASEAN blocs together in the panel, an evidence of income convergence over the years has been found. The analysis supports the view of trade liberalization and recommends investing in the human capital to narrow down the regional disparity in future. To achieve a favorable impact of Asian rising growth, regional integration is important, for that a collective policy framework at the regional level is needed for both SAARC and ASEAN.

Since its launch in 2013, the Belt and Road Initiative (BRI) has attracted frequent commentary and analysis. Much of these discussions have focused on its effectiveness and viability as a large-scale economic as well as geopolitical project. This paper contributes to that discussion by exploring BRI’s impact on regional organizations, specifically in South Asia. Using South Asian Association for Regional Cooperation (SAARC) as a case study, I argue that BRI’s impact on regional organization is inadequately understood. BRI is not a competitor to regional organizations, but its presence in a region creates a priority conundrum for member states i.e., members who join effectively must mainline the BRI into their national interests. By offering transactional functionality, BRI offers member states the opportunity to access immediate tangible benefits like foreign investment and infrastructure development. While states continue to be the members of various international and regional organizations, their commitment and policy priorities inevitably end up aligning with BRI if they choose to sign up. With BRI as a part of their national interest, states inadvertently cede policy autonomy, especially on issues of concern for China. This creates a situation that grants China a voice in organizations where it’s not even a member. This impacts the character and culture of regional organizations creating relevancy and effectiveness concerns.

India’s regional cooperation in neighboring South Asia and the broader Indo-Pacific region is undergoing a transformative evolution driven by geopolitical, economic, and strategic dynamics. From the stagnation of traditional regional cooperation frameworks like SAARC to the emergence of sub-regional initiatives and strategic partnerships, the region is witnessing a concerted effort to foster peace, prosperity, and security. India, as a key player in the region, has been actively engaging in various multilateral platforms such as BIMSTEC, SCO, and IORA to advance its strategic objectives while addressing shared concerns like terrorism and energy security. Initiatives like the BBIN Motor Vehicles Agreement and SASEC demonstrate India’s commitment to deepening sub-regional integration and unlocking economic potential. However, challenges such as geopolitical rivalries, exclusionary practices, and resource constraints continue to hinder the realization of the full potential of regional cooperation initiatives. Policy recommendations include strengthening sub-regional mechanisms and enhancing connectivity and trade facilitation. By embracing these recommendations, India’s regional cooperation in neighboring South Asia and the broader Indo-Pacific region can work toward building a more prosperous, stable, and interconnected future.

The South Asian Association for Regional Cooperation, SAARC, founded in 1985, has floundered since its inception due to the lack of a strong political will. This article evaluates the political-economic and strategic benefits of deeper integration in South Asia from the Indian perspective. The abysmally low level of integration witnessed so far in the region has been driven by a myriad of constraints that restrict economic interaction among the South Asian countries. Gains from regional integration can emerge only after these constraints are effectively addressed. The central argument of the article is that recent global developments and increasing openness of SAARC economies are moving the principal drivers of this process towards a more supportive stance for SAARC and this creates a new window of opportunity. This opportunity must be seized by India as it has taken on the chairmanship of the organization, because a successful SAARC directly contributes to India's strategic objectives both in the region and also globally. In this context the article discusses ten reasons for India to rejuvenate integration efforts and revive regional cooperation in South Asia.