Regional Investment Pioneers in South Asia - The Payoff of Knowing Your Neighbors

Jul 19, 2026

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Regional Investment Pioneers in South Asia: The Payoff of Knowing Your Neighbors examines how firms and investors across South Asia engage with regional opportunities and how cross-border familiarity affects investment outcomes. It reviews investment patterns, including low levels of inward and outward FDI and weak intraregional investment shares among developing economies. The report identifies key drivers shaping outward investment by South Asian firms and frames implications for decision-makers and policy debate.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages261

Reading Time10 h 58 min

Overview

Key Messages

Context and Motivation

Investment Landscape: Low Levels of Inward FDI

Investment Landscape: Low Levels of Outward FDI

Investment Landscape: Lowest Intraregional Investment Share among Developing Economies

Key Drivers of Outward Investment of South Asian Firms

SOUTH ASIA DEVELOPMENT FORUM Regional Investment Pioneers in South Asia The Payoff of Knowing Your Neighbors Sanjay Kathuria, Ravindra A. Yatawara, and Xiao’ou Zhu Public Disclosure Authorized Public Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized Regional Investment Pioneers in South Asia SOUTH ASIA DEVELOPMENT FORUM Regional Investment Pioneers in South Asia The Payoff of Knowing Your Neighbors SANJAY KATHURIA, RAVINDRA A. YATAWARA, AND XIAO’OU ZHU © 2021 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; [Internet: www.worldbank.org](Internet: www.worldbank.org) Some rights reserved 1 2 3 4 24 23 22 21 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) [http://creativecommons.org/licenses/by/3.0/igo. Under](http://creativecommons.org/licenses/by/3.0/igo. Under) the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows: Kathuria, Sanjay, Ravindra A. Yatawara, and Xiao’ou Zhu. 2021. Regional Investment Pioneers in South Asia: The Payoff of Knowing Your Neighbors. South Asia Development Forum. Washington, DC: World Bank. doi:10.1596/978-1-4648-1534-8. License: Creative Commons Attribution CC BY 3.0 IGO Translations—If you create a translation of this work, please add the following disclaimer along with the attribution: This translation was not created by The World Bank and should not be considered an official World Bank translation. The World Bankshall not be liable for any content or error in this translation. Adaptations—If you create an adaptation of this work, please add the following disclaimer along with the attribution: This is an adaptation of an original work by The World Bank. Views and opinions expressed in the adaptation are the sole responsibility of the author or authors of the adaptation and are not endorsed by The World Bank. Third-party content—The World Bank does not necessarily own each component of the content contained within the work. The World Bank therefore does not warrant that the use of any third-party-owned individual component or part contained in the work will not infringe on the rights of those third parties. The risk of claims resulting from such infringement rests solely with you. If you wish to re-use a component of the work, it is your responsibility to determine whether permission is needed for that re-use and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. All queries on rights and licenses should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; [e-mail: pubr

FAQs

What does the report focus on regarding South Asia’s investment patterns?

It evaluates inward and outward FDI levels and highlights the low intraregional investment share among developing economies in South Asia.

How does “knowing your neighbors” relate to investment outcomes?

The report links regional familiarity to investment behavior, explaining why cross-border knowledge and relationships can affect where and how firms invest.

Which topic does the report cover first in its investment landscape section?

It begins by addressing low levels of inward FDI before covering low levels of outward FDI and then the intraregional investment share.

Jul 19, 2026

Upload by Levi