Impact of trade factors on economic growth: seemingly unrelated regression model

Abstract

This study explores the impact of trade on the economic growth, using seemingly unrelated regression model for SAARC countries namely Bangladesh, India, Pakistan and Srilanka for the period of 1980-2012. Trade factors include total exports, total imports, terms of trade, trade openness and investment. The results indicate the strong correlation between trade factors and economic growth, however, the magnitude of influencing economic growth varies factors to factors of international trade.