Trade,Foreign Direct Investment and Regional Economic Development in the SAARC Region

초록

In the 1950s and 1960s, it was widely believed that developing countries could create industrial bases only by substituting domestic manufactured goods for imports. From the mid-1960s onward, it became increasingly apparent that there was another possible path to industrialization via. Exports of manufactured goods primarily do advanced nations after forming trade associations such as SAARC, ASEAN etc. Moreover, the countries developed in this manner-a group that the World Bank now refers to as the high performance Asian economies- achieved a spectacular growth, in some cases at more than 10 percent per year. This paper analyses the pros and cons of the forming trade unions among the SAARC nations and how this union could be made more effective to combat any major economic turmoil and exigencies. The implications of "East Asian Miracle" is being viewed differently and different observers place very different interpretations on the role of the government policies, including trade policy, in fostering economic growth. To some observers the success of Asian economies demonstrates the effectiveness of sophisticated government intervention and there are some economists who believe that trade, industrial policy and trade unions made little difference either way. This paper attempts to analyze the relative importance of forming trade unions on the macro-economic development of member nation vis-?-vis their respective industrial polices.