Bilateral trade: a study on SAARC countries
AbstractThis research paper offers a selective survey of gravity equation in the International Trade. Gravity equation was first introduced in the Sixties as a purely empirical proposition to explain bilateral trade flow. The data was taken from the SAARC countries to evaluate the factors affecting the bilateral trade volume. The variables that impact on trade volume are studied in this thesis, as in : Transport Cost, Inflation, Exchange Rate, GDP, population, Tariff and distance by using multiple linear regressions. The results of transport cost, inflation, exchange rate, GDP and distance has the significant impact on the bilateral trade, whereas tariff and population have insignificant values.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36158.
Date of creation: 2009
Date of revision:
Publication status: Published in South Asian Journal of Management Sciences 2.3(2009): pp. 15-21
Bilateral Trade; SAARC countries;
Find related papers by JEL classification:
- A1 - General Economics and Teaching - - General Economics
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