Interdependence of SAARC-7 countries: an empirical study of business cycles
AbstractThis research intends to study on the interdependence of South Asia Association of Regional Co-operation (SAARC-7) relationship. It consists of seven countries which include Sri Lanka, Pakistan, Nepal, Maldives, India, Bhutan and Bangladesh. This study utilizes yearly real GDP data that spans from 1970 to 2007 from the SAARC-7 countries. Three methods are used to determine the interdependence of SAARC-7 countries namely the correlation coefficient estimation method, the standard Dickey-Fuller (ADF) unit root test and the Granger non-causality test proposed by Toda and Yamamoto (1995). Empirical results show that there are mutual relationship and correlation among the real GDP growth between SAARC-7 countries in the long run. Results obtained from the Toda and Yamamoto Granger non-causality test indicate that there is a sturdy interdependence among the economies of SAARC-7 countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32798.
Date of creation: 2009
Date of revision:
Economy Integration; Business Cycles; SAARC-7;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maximo Camacho & Gabriel Perez-Quiros, 2004.
"Are European business cycles close enough to be just one?,"
Computing in Economics and Finance 2004
16, Society for Computational Economics.
- Camacho, Maximo & Perez-Quiros, Gabriel & Saiz, Lorena, 2006. "Are European business cycles close enough to be just one?," Journal of Economic Dynamics and Control, Elsevier, vol. 30(9-10), pages 1687-1706.
- Máximo Camacho & Gabriel Pérez-Quirós & Lorena Saiz, 2004. "Are european business cycles close enough to be just one?," Banco de Espaï¿½a Working Papers 0408, Banco de Espa�a.
- Camacho, Maximo & Pérez-Quirós, Gabriel & Sáiz Matute, Lorena, 2005. "Are European Business Cycles Close Enough to be Just One?," CEPR Discussion Papers 4824, C.E.P.R. Discussion Papers.
- Shigeyuki Hamori, 2000. "The transmission mechanism of business cycles among Germany, Japan, the UK and the USA," Applied Economics, Taylor and Francis Journals, vol. 32(4), pages 405-410.
- Mastromarco, Camilla & Woitek, Ulrich, 2007. "Regional business cycles in Italy," Computational Statistics & Data Analysis, Elsevier, vol. 52(2), pages 907-918, October.
- Jordan Shan & Fiona Sun, 1998. "Domestic Saving and Foreign Investment in Australia: A Granger Causality Test," International Economic Journal, Korean International Economic Association, vol. 12(4), pages 79-87.
- Jain, Subhash C., 1999. "Prospects for a South Asian free trade agreement: problems and challenges," International Business Review, Elsevier, vol. 8(4), pages 399-419, August.
- Robert Inklaar & Richard Jong-A-Pin & Jakob de Haan, 2005.
"Trade and Business Cycle Synchronization in OECD Countries - a Re-examination,"
CESifo Working Paper Series
1546, CESifo Group Munich.
- Inklaar, Robert & Jong-A-Pin, Richard & de Haan, Jakob, 2008. "Trade and business cycle synchronization in OECD countries--A re-examination," European Economic Review, Elsevier, vol. 52(4), pages 646-666, May.
- Saxena, Sweta Chaman, 2005.
"Can South Asia adopt a common currency?,"
Journal of Asian Economics,
Elsevier, vol. 16(4), pages 635-662, August.
- Khan, Saleem M. & Khan, Zahira S., 2003. "Asian economic integration: a perspective on South Asia," Journal of Asian Economics, Elsevier, vol. 13(6), pages 767-785, January.
- Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
- Guglielmo Maria Caporale & Margarita Katsimi & Nikitas Pittis, 2002. "Causality Links between Consumer and Producer Prices: Some Empirical Evidence," Southern Economic Journal, Southern Economic Association, vol. 68(3), pages 703-711, January.
- Hassan, M. Kabir, 2001. "Is SAARC a viable economic block? evidence from gravity model," Journal of Asian Economics, Elsevier, vol. 12(2), pages 263-290.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.