An Empirical Estimation of Asia's Untapped Regional Integration Potential Using Data Envelopment Analysis

Naeher, Dominik

doi:10.1162/adev_a_00056

Cited by 11 publications

(2 citation statements)

References 23 publications

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“…In contrast, we focus on efficiency in the financing of public spending through domestic revenue mobilisation. Other topics in economics that have been studied by applying DEA include agricultural productivity (Latruffe et al, 2004), efficiency in schools (Ray, 1991;Bogetić and Chattopadyay, 1995), national transportation and commerce (Rashidi and Cullinane, 2019;Wang et al, 2020), and regional economic integration (Naeher, 2015;Naeher and Narayanan, 2020). In a recent study on private capital mobilisation, Naeher and Narayanan (2021) perform a similar analysis as presented here that focuses on countries' ability to attract (foreign) private capital flows, such as foreign direct investment and portfolio equity investment.…”

Section: Related Literaturementioning

confidence: 99%

Measuring untapped revenue potential in developing countries: cross-country frontier and panel data analysis

Bogetić

Naeher

Narayanan

2023

Journal of Public Finance and Public Choice

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Efforts supporting domestic revenue mobilisation in developing countries are often designed and evaluated based on empirical indicators, such as ratios of revenue to gross domestic product, which capture differences in achieved outcomes across countries. This article studies a complementary approach that also takes into account differences in countries’ fundamental economic structures associated with different capacities to raise revenue, which are not captured by simple ratios of revenue to gross domestic product. Non-parametric data envelopment analysis is applied to estimate domestic revenue potential in a panel of 118 low- and middle-income countries from 2008 to 2019. This approach provides a data-driven measure of how efficient each country is in raising domestic revenue given its national economic conditions. The results indicate that countries’ relative efficiencies do not exhibit the same strongly positive correlation with income levels as typically observed for ratios of revenue to gross domestic product. Instead, countries with low efficiency are spread across all income groups and geographical regions. This suggests that looking solely at ratios of revenue to gross domestic product might be misleading for drawing policy and normative conclusions about how much more revenue a country should aim to raise. Finally, panel regression analysis is used to investigate the extent to which international support is targeted at countries with larger untapped revenue potential.

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Section: Related Literaturementioning

confidence: 99%

Measuring untapped revenue potential in developing countries: cross-country frontier and panel data analysis

Bogetić

Naeher

Narayanan

2023

Journal of Public Finance and Public Choice

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“…The obtained insights contribute mainly to the economic literature on regional integration [see the surveys in Baldwin and Venables ( 1995 ), Te Velde ( 2011 )]. In recent years, there has also been an increasing interest in empirical measures of regional integration outcomes by policymakers and international institutions such as the United Nations, World Bank, and regional development banks (AfDB, 2016 ; Naeher, 2015 ; Naeher & Narayanan, 2020 ; UNESCAP, 2020 ). The paper most closely linked to our analysis is perhaps the study (De Lombaerde et al, 2021 ) which uses a machine learning approach based on a network clustering algorithm to evaluate the composition of real-world CUs.…”

Section: Introductionmentioning

confidence: 99%

On the Optimal Size and Composition of Customs Unions: An Evolutionary Approach

2022

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Customs unions enable countries to freely access each other’s markets, which is thought to increase intra-regional trade and economic growth. However, accession to a customs union also comes with the condition that all members need to consent to a common external trade policy. Especially if countries feature different economic structures, this may act as a force against the creation of large customs unions. In this paper, we propose a new mathematical approach to model the optimal size and composition of customs unions in the form of a bi-objective combinatorial non-linear problem. We also use a multi-objective evolutionary algorithm (NSGA-II) to search for the best (non-dominated) configurations using data on the trade flows and economic characteristics of 200 countries. Our algorithm identifies 445 different configurations that are strictly preferable, from a global perspective, to the real-world landscape of customs unions. However, many of these non-dominated configurations have the feature that they improve outcomes for the world as a whole, on average, but not for all individual countries. The best configurations tend to favour the creation of a few large customs unions and several smaller ones.

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South Asia: Multilateral trade agreements and untapped regional trade integration

Kumar

2020

Int. J Fin Econ

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This paper presents the facts on existing and future prospects of regional trade integration in South Asia in the backdrop of multilateral trade agreements. The study applies trade intensity index of four largest South Asian countries (India, Bangladesh, Pakistan, and Sri Lanka) to estimates the short‐ and long‐run trade co‐integration in autoregressive multilateral framework. The results highlights that long‐run trade complementarities are found between the trade of Pakistan and Sri Lanka, while short‐run trade complementarities exist between India and Bangladesh, and between India and Sri Lanka. Pakistan and Bangladesh are found close trade competitors in South Asia in short run. The findings are important for policy implication which highlights how to bridge the untapped regional trade integration in South Asia. If trade barriers are overcome, the greater degree of trade openness can play vital role in achieving balanced regional economic development. India being the largest economy can play key role in striving the South Asian Association for Regional Cooperation (SAARC) process for pursuing its objectives.

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An Empirical Estimation of Asia's Untapped Regional Integration Potential Using Data Envelopment Analysis

Cited by 11 publications

References 23 publications

Measuring untapped revenue potential in developing countries: cross-country frontier and panel data analysis

Measuring untapped revenue potential in developing countries: cross-country frontier and panel data analysis

On the Optimal Size and Composition of Customs Unions: An Evolutionary Approach

South Asia: Multilateral trade agreements and untapped regional trade integration

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