Trade and Investment Relationship in SAARC Countries: A Gravity Model Analysis

  • Rahul Nath Choudhury MS University of Baroda Vadodara Gujarat
  • Dinkar Narsinh Nayak Associate Professor Department of Business Economics MS University of Baroda Vadodara Gujarat
Keywords: FDI, SAARC, Gravity model

Abstract

The recent surge in the volume of world trade and FDI has attracted a debate amongst the researchers and policy makers on the issue of the relationship between these two. I.e. whether FDI enhances trade or contracts trade? Our current study tries to find out the answer of this question in case of SAARC group of countries. This study applies gravity model for the analysis. The study covered the time period from 2000 to 2012. The study finds both complementary and supplementary relationship exists between these two variables in the SAARC region. 

Author Biographies

Rahul Nath Choudhury, MS University of Baroda Vadodara Gujarat

Research Scholar

MS University of Baroda

Vadodara Gujarat

Dinkar Narsinh Nayak, Associate Professor Department of Business Economics MS University of Baroda Vadodara Gujarat

Associate Professor
Department of Business Economics

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Published
2015-03-23
How to Cite
Choudhury, R. N., & Nayak, D. N. (2015). Trade and Investment Relationship in SAARC Countries: A Gravity Model Analysis. Journal of Global Economy, 11(1), 61-78. https://doi.org/10.1956/jge.v11i1.373
Section
Articles