This document summarizes a research project investigating co-integration in per capita income of SAARC countries. It outlines the problem statement, hypothesis that per capita income is co-integrated, literature review, research methods using 30 years of World Bank data on per capita income as the dependent variable, and statistical techniques including the Augmented Dickey-Fuller test. The results found the per capita incomes of two SAARC countries, Maldives and Afghanistan, are not co-integrated based on the trace and max-eigen statistic critical values.

1. Investigating
Co-integration In Per Capita Income
Of SAARC Countries
RESEARCH PROJECT II
May 2013
Advisor (Dr. M.I Subhani)

2. GROUP MEMBERS
Adnan Abdullah (12856)
Asad Alam (13498)
Ayman Shahzad (12947)
Hafiz Abdul Wahab (12754)
Hasham Tariq (12882)
Salahuddin Jumani (12672)

3. Introduction
Overview of the Study

4. • Problem Statement
• Hypothesis

5. Whether there is
Co-Integration
in Per Capita
income, or not?

6. Literature
review

7. RESEARCH METHODS
• Sample Size?
30 Years data of Per Capita Income of SAARC
countries
• Source of Information?
World Bank

8. RESEARCH METHODS
• Variables of the Study?
Dependent variable Per capita income of SAARC
Countries
• Statistical techniques
Augmented dickey fuller test is applied

9. • Trace Statistic Critical value
142.995 > 95.753
• Max-Eigen Statistic Critical value
47.900 > 40.077
RESULTS

10. Conclusion
The per capita incomes
of two SAARC
countries are not co-
integrated (Maldives &
Afghanistan)

11. Thank You