This paper attempts to investigate the role of globalization and economic integration among the macroeconomic structure of seven SAARC member countries including Pakistan, India, Bangladesh, Sri Lanka, Nepal, Maldives and Bhutan during the last two decades. The objective of the paper is to improve understanding of the process of trade liberalization through economic integration in South Asia. In this regard free trade agreements can play a very vital role to encourage trade liberalization process among SAARC countries. The data provides the substantial evidence, which shows the advantages of intra regional trade enhancement through enlargement of markets and efficient utilization of productive resources. It will improve the transfer of technologies and skills. Each member country may be able to enhance the gains of increase in trade and comparative advantage due to the economies of scale and best allocation of all factors of production.
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Copyright (c) 2012 Dr. Rummana Zaheer