Submitted by:
Mustajab Ibrahim (12630)
Submitted to:
Mr.Nawaz Ahmed
IQRA UNIVERSITY DEFENCE VIEW KARACHI
DATE:
11th December, 2012
Abstract
This research paper offers a selective survey of gravity equation in the International Trade. Gravity equation was first introduced in the Sixties as a purely empirical proposition to explain bilateral trade flow. The data was taken from the SAARC countries to evaluate the factors affecting the bilateral trade. The variables that impact on bilateral trade are studied in this report, as in: GDP and distance are independent variables and trade flow as a dependent variable. Export of Pakistan is found to be sig with Afghanistan, Bangladesh, India, Maldives and Srilanka and insignificant with Nepal and Bhutan. Import of Pakistan is found to be sig with Afghanistan, Bangladesh, India and insignificant with Nepal, Maldives, Srilanka and Bhutan.
Letter of Transmittal
December 11th, 2012
Dr.Nawaz Ahmed,
Managerial Economics,
Iqra University,
Defense View
Karachi.
Dear Nawaz Ahmed,
I feel immense pleasure in presenting to your good self, the research report as part of our course requirement. I found this report to be truly challenging in many aspects, indeed very interesting in relation to the various interpretational and engrossing exercises. Writing this report itself was truly comprehensive learning experience.
This research report is about the Trade flow between Pakistan and other SAARC countries. In this report we tried to find the trade flow between SAARC countries by using Gravity equation. I have tried my level best to complete the report with respect to the desired requirements. However, if any explaining is required, we would be honored to oblige. Kindly accept this humble effort of bringing forward our research and findings on the subject matter.
Yours sincerely,
M.Mustajab Ibrahim,
Letter of Acknowledgement
First and