Abstract
This study has twin objectives: first, to investigate the interrelationship between export and Foreign Direct Investment (FDI). Second, we test the causal linkage with import and FDI. For this purpose, we select four major South Asian countries, namely India, Bangladesh, Sri Lanka and Pakistan. The study is based on Granger non-causality test of Toda and Yamamoto (1995) for the period 1990Q1-2007Q4. The evidence shows that there is a bi-directional causality between FDI and Trade. Specifically, our analysis indicates for interrelations between export and FDI as well as between import and FDI in the region. This may reflect the fact that import has played a crucial role in export growth in South Asia. Overall, the results indicate a complementary relationship between FDI and Trade.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
