Trade amongst the South Asian countries continues to be low despite tariff reductions under the region s Free Trade Agreements, primarily due to the high transaction costs of trading. This study examines the case of India and Pakistan s trade and transport facilitation in the larger context of South Asia. A framework for transaction cost analysis is developed, which quantifies and compares the costs of trade impediments incurred by Indian and Pakistani traders. Apart from analysing the conventional transaction costs identified in the South Asian context, the study also considers transaction...