Economic Reforms, Regional Integration and Labour Markets in the South Asian Region †

Abstract

The countries of the South Asian region have introduced various economic re forms measures in recent times. These have been necessitated by the imperatives of internal and external dynamics of production, trade, investment and techno logical trends. Along with taking policy steps to take advantage of the global inte gration process, the South Asian countries have also been engaged in the regional integration process by taking recourse to various unilateral, bilateral, sub-regional and regional initiatives. These policy changes have led to an economic regime in which several structural changes have occurred in different sectors of the econ omy. This article attempts to analyze the structural shifts in the industrial sector of the economies under consideration and brings out some of their labour market implications. One of the principal findings of the study is the growing importance of the medium labour-intensive category of industries in the investment space of some of the South Asian countries. This is a positive feature as it is this category of industries which can help balance the objectives of employment generation and technological upgradation. The article also argues for the setting up of regional integrated sectors in the region and taking advantage of the growth zones approach in fostering production, employment, trade, investment and technological link ages in the region.