Export-Import Overview of Bangladesh
Trade and Development Review Vol. 2, Issue 2, 2009, 79-92 http://www.tdrju.net
Export, Imports, Remittance and Growth in Bangladesh: An Empirical Analysis
Haydory Akbar Ahmed1 Md. Gazi Salah Uddin2
This paper investigates the causal nexus between export, import, remittance and GDP growth for Bangladesh using annual data from 1976 to 2005. The paper uses time series econometrics tools to investigate the relationship adding import and remittance in the model. Study finds limited support in favor of export-led growth hypothesis for Bangladesh as exports, imports and remittance cause GDP growth only in the short run. The causal nexus is unidirectional. JEL Classifications: C32, F24, F43 Keywords: Exports, Imports, Remittances, Economic Growth and Time-Series Models
I. Introduction GDP growth of Bangladesh has been 5 per cent and above in the past decade or so with increasing exports, imports and remittance. Ratio of total trade (exports plus imports) to GDP rose from 17.6 percent in 1990 to around 29.4 percent in 2002 (World Bank, 2005). Export growth is often considered to be a principal determinant of production and employment growth in an economy. It is also argued that foreign currency made available through export earnings facilitates import of capital goods, which in turn increases production potential of an economy.
Haydory Akbar Ahmed working as Lecturer at the Economics and Social Science Department, BRAC University, Dhaka. The author’s contact address: h.a.ahmed@bracuniversity.ac.bd 2 Md. Gazi Salah Uddin working as Senior Lecturer, at the Business Administration Department, East West University, Dhaka. The author’s contact address: gsu@ewubd.edu, rimsust2002@yahoo.com Earlier version of this paper was presented in the seminar on ‘Developing Nations in the World Economy: Recent Issues in International Trade and the WTO’ at Jadavpur University, Kolkata during 17-18 April 2008. The authors gratefully acknowledge the constructive comments of an
Export, Imports, Remittance and Growth in Bangladesh: An Empirical Analysis
Haydory Akbar Ahmed1 Md. Gazi Salah Uddin2
This paper investigates the causal nexus between export, import, remittance and GDP growth for Bangladesh using annual data from 1976 to 2005. The paper uses time series econometrics tools to investigate the relationship adding import and remittance in the model. Study finds limited support in favor of export-led growth hypothesis for Bangladesh as exports, imports and remittance cause GDP growth only in the short run. The causal nexus is unidirectional. JEL Classifications: C32, F24, F43 Keywords: Exports, Imports, Remittances, Economic Growth and Time-Series Models
I. Introduction GDP growth of Bangladesh has been 5 per cent and above in the past decade or so with increasing exports, imports and remittance. Ratio of total trade (exports plus imports) to GDP rose from 17.6 percent in 1990 to around 29.4 percent in 2002 (World Bank, 2005). Export growth is often considered to be a principal determinant of production and employment growth in an economy. It is also argued that foreign currency made available through export earnings facilitates import of capital goods, which in turn increases production potential of an economy.
Haydory Akbar Ahmed working as Lecturer at the Economics and Social Science Department, BRAC University, Dhaka. The author’s contact address: h.a.ahmed@bracuniversity.ac.bd 2 Md. Gazi Salah Uddin working as Senior Lecturer, at the Business Administration Department, East West University, Dhaka. The author’s contact address: gsu@ewubd.edu, rimsust2002@yahoo.com Earlier version of this paper was presented in the seminar on ‘Developing Nations in the World Economy: Recent Issues in International Trade and the WTO’ at Jadavpur University, Kolkata during 17-18 April 2008. The authors gratefully acknowledge the constructive comments of an
References: Trade and Development Review, Vol. 2, Issue 2, 2009 © Jadavpur University.