In this study, the objective is to empirically explore the role of logistics in enhancing production linkages through trade in intermediate products. Two case studies of trade in intermediate goods are undertaken: (i) India’s export of textile yarn to Bangladesh; and (ii) India’s import of air conditioning equipment from Thailand.
Here, yarn and air conditioning equipment are selected owing to a steady rise in trade of these two products, which are facilitated by regional and bilateral FTAs.47 Bangladesh buys yarn from India, and India buys air conditioning equipment from Thailand. These can facilitate the development of integrated production networks.
This chapter is taken from the book Trade Performance and Competitiveness: Selected Issues Relevant for Asian Developing Economies. United Nations Economic and Social Council for Asia-Pacific.