DefinePK

Abstract

Regional trade integration has emerged as a cornerstone of modern economic development strategies. This paper investigates how trade policies, regional frameworks, and institutional alignments influence economic competitiveness among developing economies, particularly within South Asia. It examines the economic logic behind trade liberalization, tariff reforms, and regional cooperation mechanisms such as the South Asian Free Trade Area (SAFTA). Using comparative policy analysis, the study highlights how integrated trade systems enhance productivity, attract foreign direct investment (FDI), and stimulate innovation through cross-border linkages. Findings reveal that while integration promotes economic diversification and resilience, disparities in infrastructure and governance remain critical barriers. The paper concludes that harmonized trade policies, institutional trust, and investment in transport corridors are essential for achieving sustained regional competitiveness..