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Determinants of Trade Development: Panel Evidence from South Asia

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  • Nilotpal Goswami

Abstract

This article empirically examines the determinants of trade development for South Asian countries over the period 1980–2010 using panel analysis. The result of unit root indicates that all the variables are appropriate for panel cointegration. The panel cointegration test reveals long-run relationship between trade ratio and its determinants. The panel fully modified ordinary least squares (FMOLS) long-run coefficients indicate that per capita income growth, trade liberalization, human capital, financial and infrastructure development have played a major role in influencing trade growth in South Asia.

Suggested Citation

  • Nilotpal Goswami, 2013. "Determinants of Trade Development: Panel Evidence from South Asia," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 17-33, March.
    • Handle: RePEc:sae:soueco:v:14:y:2013:i:1:p:17-33
    DOI: 10.1177/1391561413477930
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    More about this item

    Keywords

    Fully mosdified OLS (FMOLS); panel cointegration; South Asia; trade;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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