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Economic reforms are increasingly taking place worldwide in businesses.There are several reasons behind the rapid rise in economic growth,but globalization is one of the most significant.Trade is the most important factor of globalization which is associated with broader economic,technological,and political forces.In this analysis the main objective is to examine the key elements that affect the balance of trade and to see whether they affect the South Asian for Regional Cooperation(SAARC)member countries positively or negatively.Including most countries in Southern Asia,facing trade deficit in last several years due to identical goods production and same export market so there is a need to search out the way for trade reforms which affects the trade balance positively.Furthermore,this study aims to suggest some possible measures to bring prosperity in south Asia region.Real effective exchange rate,export,import,foreign direct investment,inflation,financial deepening,foreign aid,and Final consumption expenditures are independent variables used for this analysis.While the trade deficit,is a dependent variable.A Groups of Researchers aim to collect annual time series data of 7 SAARC countries during the period of 1990 to 2017.Different resources are used to collect data like US International Macro-Economic data set and Bruegel Resources.Econometric Models are used for this Study.This research seeks to quantify the factors disturbing trade deficit in SAARC.In This study applied several econometric tests i.e.,Panel Unit Root,panel-corrected standard error(PCSE)and Feasible Generalized Lease Square(FGLS).The econometric results show that the impact of import on trade deficit is positive and significant.Here the export negatively and significantly correlated with trade deficit,meaning that as export of the sample economies accelerate obviously the trade deficit will decrease.The exchange rate’s effect on the trade deficit is significant and negative.The impact of Financial Deepening on trade is significant and negative.The impact of foreign direct investment(FDI)is negative and significant.The effect of domestic consumption on trade deficit is positive and significant.Furthermore,the overall results recommended that in long run the selected independent variables encourage exports and reduce trade deficit in SAARC economies.