Purpose This paper explains the nature of regional trade among South Asian countries and the shortcomings of expected trade among these nations. This study proposes to promote, emphasise and increase mutual regional trade, which would also enhance mutual trust. The estimated results would also highlight some significant implications for Southeast Asia. Design/methodology/approach The paper employed an exploratory study, utilizing the trade scarcity index to measure the regional trade share among South Asian countries. Trade data from 2000 to 2024 was used. The data was compiled from the World Integrated Trade Solution database. Findings The paper provides empirical evidence on the implementation of trade agreements. The results show that trade scarcity is below 0.5 among all South Asian countries. Among all countries, India has a high index of trade linkages with other South Asian countries. Sri Lanka also has above-average regional bilateral trade integration. Despite numerous regional agreements, regional trade integration between countries in this sub-region is very low. The data shows that countries with better political relations continue to have favourable cross-border trade with each other. Research limitations/implications Due to the present research approach, the research results may lack generalizability. Therefore, the researcher requests further explanation in this regard. Practical implications Researchers in this field can use the findings to elaborate on the future study. Social implications The present research is academically and socially useful because students of Political Science, Public Administration and International Relations read about political economy. In consequence, they would get an appropriate scenario of South Asian politics and its impact on regional trade. Thus we can gain social benefits by implementing the findings of this paper. Originality/value The paper added a new dimension to the existing literature in this field. The existing trade nature has also been explained through theories. This paper serves an important purpose in studying how the political economy influences trade among South Asian countries. This has enabled us to recognise regional trade and economic integration in South Asia and its impact on Southeast Asian countries.
Mst. Sahiba Mahbub (Tue,) studied this question.