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Analyzing relationship between import and export of Sri Lanka using vector auto-regressive approach

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dc.contributor.author Mayazir, N.N.
dc.contributor.author Jahufer, A.
dc.date.accessioned 2018-12-07T08:57:00Z
dc.date.available 2018-12-07T08:57:00Z
dc.date.issued 2017-11-28
dc.identifier.isbn 9789556271232
dc.identifier.uri http://ir.lib.seu.ac.lk/handle/123456789/3299
dc.description.abstract Sri Lanka is a developing country. The trade plays an important role in the economic growth of a country. Basically, economic growth of a country depends on the nature and type of relationship between trade and domestic economic growth. Economists use the balance of trade as a statistical tool to understand the relative strength of a country’s economy versus other countries’’ economics and the flow of trade between nations. It is the largest component of the country's balance of payments. The trade balance is the difference between a country’s imports and its exports for a given time period. This study was aimed to analyse the relationship between import and export of Sri Lanka during the period of 1960 to 2015. The stationarity of the variables was checked by applying Augmented Dickey-Fuller (ADF) and Phillips-Parron (PP) unit root tests. Modern econometric techniques such as Vector Auto-Regression (VAR), Impulse Response Function (IFR) and Variance Decomposition were applied to determine the long-term relationship between export and import. Empirical results from impulse response function and variance decomposition confirm the existence of the positive relationship between import and export of Sri Lanka. The sock to export can cause the fluctuation in import and sock to import can also cause the fluctuation in export. But comparatively the variance contribution of import to export is higher than the variance contribution of export to import. en_US
dc.language.iso en_US en_US
dc.publisher Faculty of Applied Science, South Eastern University of Sri Lanka en_US
dc.subject Impulse response function, en_US
dc.subject Sri Lanka, Vector auto regressive, en_US
dc.subject Variance decomposition. en_US
dc.title Analyzing relationship between import and export of Sri Lanka using vector auto-regressive approach en_US
dc.type Article en_US


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