Foreign direct investment and international trade in BIMSTEC: panel causality analysis

Abstract

Economic engagement and disengagement are part and parcel of political economy and geopolitical concerns. The recent non-participation of India in the South Asian Association for Regional Cooperation summit has proved fatal. This has resulted in the shift of attention of the major Asian countries towards The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) region for world trade and foreign direct investment (FDI). The present study is an attempt to empirically identify the causality between variables of FDI and world trade across panel data for BIMSTEC countries. This is an attempt to search for further causality.

Keywords:

• BIMSTEC
• causality
• FDI
• world trade

Disclosure statement

No potential conflict of interest was reported by the authors.