IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v32y2000i8p1077-1084.html
   My bibliography  Save this article

Export response to trade liberalization in Bangladesh: a cointegration analysis

Author

Listed:
  • Nasiruddin Ahmed

Abstract

This paper investigates the response of Bangladesh's aggregate merchandise exports to a real exchange rate-based trade liberalization programme during the period 1974-1995. The cointegration and error correction modelling approaches have been applied. The empirical results suggest that there exists a unique long-run or equilibrium relationship among real quantities of export, relative export price and export-weighted real effective exchange rate. The short-term dynamic behaviour of Bangladesh's export supply has been investigated by estimating an error correction model in which the error correction term has been found to be correctly signed and statistically significant. Relative export price (lagged two quarters), real effective exchange rate, predicted values of real GDP (lagged one quarter) and a dummy variable capturing the effects of trade liberalization programme have all emerged as important determinants of an aggregate export supply function for Bangladesh. The error correction model has also been found to be robust as it satisfies all relevant diagnostic tests.

Suggested Citation

  • Nasiruddin Ahmed, 2000. "Export response to trade liberalization in Bangladesh: a cointegration analysis," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 1077-1084.
  • Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:1077-1084
    DOI: 10.1080/000368400322138
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322138
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tan, Yong & An, Liwei, 2015. "Regional Effect of Trade Liberalization on the Firm-level Exports," MPRA Paper 66893, University Library of Munich, Germany.
    2. De Silva, Nirodha & Malaga, Jaime E. & Johnson, Jeffrey W., 2013. "Trade Liberalization Effects On Agricultural Production Growth: The Case Of Sri Lanka," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143106, Southern Agricultural Economics Association.
    3. Lanre Kassim, 2013. "The Impact of Trade Liberalisation on Export Growth and Import Growth in Sub-Saharan Africa," Studies in Economics 1310, School of Economics, University of Kent.
    4. Ogundipe, Adeyemi & Amaghionyeodiwe, Lloyd, 2013. "Transnational Trade In Ecowas: Does Export Content Matter?," MPRA Paper 51617, University Library of Munich, Germany.
    5. Silvia Nenci, 2009. "Tariff liberatization and the growth of word trade: A comparative historiocal analysis to evaluate the multilateral trading system," Departmental Working Papers of Economics - University 'Roma Tre' 0110, Department of Economics - University Roma Tre.
    6. George A. Vamvoukas, 2007. "Trade Liberalization and Economic Expansion: A Sensitivity Analysis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 5(1), pages 71-88.
    7. Parikh, Ashok & Stirbu, Corneliu, 2004. "Relationship between Trade Liberalisation, Economic Growth and Trade Balance : An Econometric Investigation," HWWA Discussion Papers 282, Hamburg Institute of International Economics (HWWA).
    8. Anonymous, 2012. "Journal of International Agricultural Trade and Development, Volume 08, Issue 2," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 8(2).
    9. Zeshan Atique & Mohsin Hasnain Ahmad, 2003. "The Supply and Demand for Exports of Pakistan: The Polynomial Distributed Lag Model (PDL) Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 961-972.
    10. Kounetas, Kostas & Napolitano, Oreste, 2015. "Too much EMU? An investigation of technology gaps," MPRA Paper 67600, University Library of Munich, Germany.
    11. Dawson, P.J., 2006. "The export-income relationship and trade liberalisation in Bangladesh," Journal of Policy Modeling, Elsevier, vol. 28(8), pages 889-896, November.
    12. Yi Wu & Li Zeng, 2008. "The Impact of Trade Liberalization on the Trade Balance in Developing Countries," IMF Working Papers 08/14, International Monetary Fund.

    More about this item

    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:taf:applec:v:32:y:2000:i:8:p:1077-1084. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.