IDEAS home Printed from https://ideas.repec.org/a/ags/bdbjaf/200185.html
   My bibliography  Save this article

Export Demand Function For Bangladesh'S Tea

Author

Listed:
  • Das, Narayan Chandra

Abstract

This paper investigates the existence of long run export demand function for Bangladesh's tea and tests for three conditions of small country assumption, namely, one to one relation between export price of tea and price substitute goods in the world market, infinitely own price elasticity of export demand, and no significant effect of world income on tea export. For this purpose an inverse demand function (price dependent) is estimated using two-step Engle-Granger Procedure proposed by Engle and Granger (1987) and a third step of the Engle-Granger Procedure proposed by Engle and Yoo (1991). It has been found that there exists long-run export demand function (inverse) for Bangladesh's tea. There also exists short run Error Correction Model (ECM). The results suggest that none of the three conditions of small country assumption can be rejected. This is evident both from long run model and short run ECM. Earlier study found that price elasticity of export demand for tea is zero which suggests that Bangladesh can impose export tax on tea to maximize revenue earnings from tea exports. The finding of the present study rules out such a policy of export tax.

Suggested Citation

  • Das, Narayan Chandra, 2006. "Export Demand Function For Bangladesh'S Tea," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 29(1-2), pages 1-18, December.
    • Handle: RePEc:ags:bdbjaf:200185
    DOI: 10.22004/ag.econ.200185
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/200185/files/Article_01%20Vol-XXIX.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.200185?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:bdbjaf:200185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/febaubd.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.