Possibilities of Regional Trade Expansion: A Link Model for Pakistan, India, Bangladesh and Sri Lanka

Syed Nawab Haider Naqvi, Ather Maqsood Ahmed, Ashfaque H. Khan

Abstract


Econometric models are generally constructed for a specific
country on the assumption that national economies are independent. In
reality, this is not the case. In this paper, we have constructed
prototype linkage econometric models for Pakistan, India, Bangladesh and
Sri Lanka, These models are linked to each other through foreign-trade
equations to explore possibilities of fruitful economic cooperation
among these four countries Policy simulations, carried out to highlight
the pay-off of specific policies in terms of the stated objective, show
that, given the resolve of these countries to extend the area of
collaboration, the prospects are by no means dim. There is also the
extra bonus that the growth of GNP in the region will also be helped by
mutual economic co-operation. The need for conscious policy decisions to
this effect has been underscored.

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DOI: https://doi.org/10.30541/v23i1pp.9-35

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