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International Journal of Innovation and Applied Studies
ISSN: 2028-9324     CODEN: IJIABO     OCLC Number: 828807274     ZDB-ID: 2703985-7
 
 
Sunday 23 September 2018

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Foreign Direct Investment and Trade Openness: The Case of South Asian Economies


Volume 17, Issue 2, July 2016, Pages 513–521

 Foreign Direct Investment and Trade Openness: The Case of South Asian Economies

Ali Asghar1

1 Department of Economics, University of Gujrat, Pakistan

Original language: English

Received 23 April 2016

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.