Trade Capacity

This study addresses the short-and long-term effects of infrastructure on exports and trade deficits in certain South Asian countries between 1990-2017. As you read, think about other countries where limited infrastructure capacity has affected their ability to develop.

Data description and source

Theoretical justification

Infrastructure plays a vital role in promoting trade and curing trade deficit. Transport infrastructure can help a country to connect its remote area domestically and to business areas world wide at low cost. Good quality of energy infrastructure promotes capital-intensified industrialization and thus reduces production cost. Marketing is one of the most important tools of promoting products to capture the market which can be made possible through telecommunication. Better financial infrastructure helps to solve financial and liquidity barriers in the way of trade.