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✓ ICTEDPS AERC Methodological Framework & Modelling . The variable used in the following model such as FDI, RP and GDP WOR are taken from Sharma (2000), while FDI, GROW and ER were used by Tariq (2006); and RP and GDP WOR were used by Chowdry (2001) as major determinants of exports. Using the variables, the model can be illustrated as: • MEXP = f (MFDI, GDPG, GDP WOR, REER RP), Where, MEXP = Total manufacturing exports of the host country MFDI = Total inflows of FDI in the manufacturing sector. GDP = Gross Domestic Product of the World WOR GDPG = Annual percentage growth rate of GDP REER = Real Effective Exchange Rate RP = Relative Prices (1) 11

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