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Determinants Of Trade Balance: A Comparison Between Pakistan And India, Khola Asif, Aurangzeb -
Determinants Of Trade Balance: A Comparison Between Pakistan And India, Khola Asif, Aurangzeb -
Business Review
This study investigates and compares the determinants of the trade balances of Pakistan and India. In this research the impact of gross domestic product (GDP), foreign direct investment (FDI), exchange rate (ER) and the remittances on the trade balance of India and Pakistan have also been considered. For this, time series data from 1981 to 2010 is used. The results of the study are based on the regression analysis, and granger causality test. Regression analysis showed that the GDP of India and Pakistan both have significant positive impact on the balance of the trade, FDI has significant negative impact on …