FACTORS LEADING THE ASIAN REGION INTO INTEGRATION

1. TRADE- the world economy is intertwined with each other whether

we like it or not. we all want or need something from another part of
the world and global trade facilities.
2. SIMILAR CULTURE-The culture of asia is diverse but they do share
many things. this make easier fit during the times of negotiation.
3. COMMON GOALS-The Asian region recognize the mutual benefit of
slow integration. territories involved are not far from each other and
industriousness of its population can work as a powerful negotiation
block against those from other parts of the world.

Greater cooperation and regional economic integration can bring about

gains in these areas and help tap into the proximity and demographic
dividend, South Asian countries enjoy. But there are several factors
restraining Regional Integration.

FACTORS RESTRAINING REGIONAL INTEGRATION:

 High trade costs and investment restrictions

 Insufficient policy-relevant analytical work on gains of Regional
Integration in both trade and investment, to make informed policy
decisions
 Skeptical mindset from previous failures in regional cooperation,
misinformation, and lack of vocal champions for regional
cooperation
 Relative asymmetry in size among the South Asian countries
 Historical political tensions, mistrust, cross-border conflicts and
security concerns
 Limited transport connectivity, logistics and regulatory
impediments

As these barriers get gradually removed, intra-regional trade in

South Asia could increase from the current $23 billion to $67
billion.