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The purpose of this study is to assess the empirical relationship between Export and GDP for BIMSTEC nations by using time series data from the period 1997–2015. Economic integration within regional trading blocs adds the significant value to increase economic growth, trade, investment, etc. BIMSTEC was proposed with the object to merge the Thailand’s “Look West” policy and ASEAN with the “Look East” policy of India and South Asia. To achieve the aim of study time series data had been used for testing econometric technique (Augmented Dickey-Fuller Test, Co integration and Granger Causality) to the assessment of hypothesis of GDP strategy led by exports and exports led by GDP. Granger Causality model is based on the following hypotheses for testing the causality and cointegration between GDP and export for BIMSTEC nations. (1) Whether there is bidirectional causality between GDP growth and export for BIMSTEC nations. (2) Whether there is unidirectional causality between the two variables, (3) Whether there is no causality between GDP and export for BIMSTEC nations. (4) Whether there exists a long-run relationship between GDP and EXPORT for BIMSTEC nations. The results explained the evidence of bidirectional causality between GDP and export among BIMSTEC bloc. The results support the exports led growth and growth-led export in case of BIMSTEC. For making BIMSTEC a “vibrant regional entity”, there are needs to revitalize coastal shipping preparations and inter-modal transport, practices for easy flow of goods and services.
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- Causality Between Exports and GDP: An Empirical Evidence from BIMSTEC Region
Jasdeep Kaur Dhami
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