Volume 17, Issue 2, July 2016, Pages 513–521
Ali Asghar1
1 Department of Economics, University of Gujrat, Pakistan
Original language: English
Copyright © 2016 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This paper examined the relationship between Foreign Direct Investment inflows and trade openness in the South Asian economies. In literature there had been diversification about this relationship. Some studies approved positive and significance relationship between FDI and Trade Openness and some found it insignificant. Our study examined the relationship of 7 countries for the time period of 12 years from 1998 to 2010 with panel data. On our data random effects were estimated. Trade openness was measured by three indicators, in terms of imports, exports and a joint combination of both the factors. The results suggested that there is significance relationship between trade openness and foreign direct investment inflows. Trade openness has positive and significance effects for FDI inflows in South Asian countries.
Author Keywords: FDI, Trade openness. South Asian Economies, Government final consumption expenditure, Exchange rate volatility.
Ali Asghar1
1 Department of Economics, University of Gujrat, Pakistan
Original language: English
Copyright © 2016 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This paper examined the relationship between Foreign Direct Investment inflows and trade openness in the South Asian economies. In literature there had been diversification about this relationship. Some studies approved positive and significance relationship between FDI and Trade Openness and some found it insignificant. Our study examined the relationship of 7 countries for the time period of 12 years from 1998 to 2010 with panel data. On our data random effects were estimated. Trade openness was measured by three indicators, in terms of imports, exports and a joint combination of both the factors. The results suggested that there is significance relationship between trade openness and foreign direct investment inflows. Trade openness has positive and significance effects for FDI inflows in South Asian countries.
Author Keywords: FDI, Trade openness. South Asian Economies, Government final consumption expenditure, Exchange rate volatility.
How to Cite this Article
Ali Asghar, “Foreign Direct Investment and Trade Openness: The Case of South Asian Economies,” International Journal of Innovation and Applied Studies, vol. 17, no. 2, pp. 513–521, July 2016.
