Interdependence of SAARC-7 countries: an empirical study of business cycles
This 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.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Máximo Camacho & Gabriel Pérez-Quirós & Lorena Saiz, 2004.
"Are european business cycles close enough to be just one?,"
0408, Banco de España;Working Papers Homepage.
- 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.
- 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 & 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 & Francis Journals, vol. 32(4), pages 405-410.
- 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.
- 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.
- 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.
- 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.
- Masih, Abul M. M. & Masih, Rumi, 1996. "Empirical tests to discern the dynamic causal chain in macroeconomic activity: new evidence from Thailand and Malaysia based on a multivariate cointegration/vector error-correction modeling approach," Journal of Policy Modeling, Elsevier, vol. 18(5), pages 531-560, October.
- Saxena, Sweta Chaman, 2005.
"Can South Asia adopt a common currency?,"
Journal of Asian Economics,
Elsevier, vol. 16(4), pages 635-662, August.
- Mastromarco, Camilla & Woitek, Ulrich, 2007. "Regional business cycles in Italy," Computational Statistics & Data Analysis, Elsevier, vol. 52(2), pages 907-918, October.
- 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.
- 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.
- 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.
- Jordan Shan & Fiona Sun, 1998. "Domestic Saving and Foreign Investment in Australia: A Granger Causality Test," International Economic Journal, Taylor & Francis Journals, vol. 12(4), pages 79-87.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:32798. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.