Sectoral Trade Channels and Economic Growth in South Asia: A Conceptual Framework and Empirical Agenda

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Analysis shows significant effects of agriculture and manufacturing trade on economic growth in South Asia, highlighting country-specific dynamics.

Agricultural and manufacturing trade positively impact economic growth, while services trade shows a negative correlation.
Positive effects were statistically significant in four South Asian countries, emphasizing the importance of sectoral trade channels.
Panel data estimation techniques were used, with emphasis on addressing endogeneity through two-stage least squares.
Country-specific trade policies can enhance growth by modernizing lagging sectors and reinforcing high-performing ones.

Shaheen et al. (2025) studied this question.

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Analysis shows significant effects of agriculture and manufacturing trade on economic growth in South Asia, highlighting country-specific dynamics.