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PSIR Optional PYQ Solutions · Model answer

Outline the reasons of low volume of trade in the SAARC region.

  • UPSC 2020
  • 10 marks
  • India and South Asia

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Jan Tinbergen's gravity model predicts heavy trade between large, adjacent economies. South Asia is the standing anomaly: intra-regional trade is barely 5% of the region's total, and the World Bank (2018) valued it at US$23 billion against a potential of at least US$67 billion. The causes are partly structural but mostly made by policy and…

You are reading the opening of the model answer. The full answer is part of the PSIR Optional PYQ Solutions.

What the full answer covers

  • Structural reasons
  • Policy barriers
  • Trade costs
  • Political reasons
  • The informal channel
  • Conclusion
PSIR Optional PYQ Solutions

PSIR Optional PYQ Solutions

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