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IMPACT OF SRI LANKA- SOUTH KOREA BILATERAL TRADE RELATIONS ON THE SRI LANKAN ECONOMY

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TABLE OF CONTENTS
APPROVAL PAGE?????????????????????????..ii
ABSTRACT????????????????????????????.iii
ACKNOWLEDGEMENT???????????????????????iv
DEDICATION???????????????????????????.v
LIST OF TABLES AND FIGURES ..??????????????????viii-ix
ABBREVIATIONS AND ACRONYMS??????????????????x
CHAPTER I: INTRODUCTION??????????????????..1-4
CHAPTER II: REVIEW OF RELATED LITERATURE????????..5-9
2.1 International Trade and Economic Growth???????????????5-7
2.2 Review of previous empirical studies???????????????........8-9
CHAPTER III ? BILATERAL TRADE AND ECONOMIC RELATIONSHIP
BETWEEN SRI LANKA AND SOUTH KOREA ??????????..10-23
3.1 Economic Overview of the two Economies ?????????????10-11
3.2 Sri Lanka ? South Korea Total Trade ???????????????...12-13
3.3 Exports ????????????????????????????..13-14
3.4 Imports????????????????????????????...15-16
3.5 Investment???????????????????????????.17-18
3.6 Official Development Assistant (ODA) and technical Assistance from
South Korea??????????????????????????..19-20
3.7 Sri Lanka Labour in Korea????????????????????.21-22
3.8 Trade/Economic Cooperation???????????????????.22
3.9 Summary of the Chapter??????????????????????..23
vii
CHAPTER IV. RESEARCH METHODOLOGY, EMPIRICAL EVIDENCE
AND ECOMMENDATION???????????????..????.24-38
4.1 Data ??????????????????????????????.24
4.2 Methodology
4.3 4.2.1 Unit root test ???????????????????????...25-27
4.2.2 Cointegration????????????????????????27-28
4.2.3 Vector Error correction Model (ECM) ?????????????29
4.3 Empirical Evidence
4.3.1 Order of Integration (Unit root test) ??????????????30
4.3.2 Testing for Cointegration??????????????????..31-33
4.3.3 Testing of Vector Error Correction Models (VECM) ??????..34-35
4.4. Recommendations???????????????????????..36-38
CHAPTER VI: CONCLUSION AND LIMITATION OF THE STUDY??..39-40
BIBLIOGRAPHY?????????????????????????41-42
APPENDIX????????????????????????????43-46

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