Bilateral trade: a study on SAARC countries
This 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.
|Date of creation:||2009|
|Publication status:||Published in South Asian Journal of Management Sciences 2.3(2009): pp. 15-21|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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- Michele FRATIANNI, 2007.
"The Gravity Equation in International Trade,"
307, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
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- Robert C. Feenstra & James R. Markusen & Andrew K. Rose, 2001. "Using the gravity equation to differentiate among alternative theories of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 430-447, May.
- Guedae Cho & Ian M. Sheldon & Steve McCorriston, 2002. "Exchange Rate Uncertainty and Agricultural Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 931-942. Full references (including those not matched with items on IDEAS)
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