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Exports and economic growth in Bangladesh


  • Shamshad Begum
  • Abul Shamsuddin


This study investigates the effect of exports on economic growth in Bangladesh, based on a two-sector growth model. Using annual data for the period 1961-92, the article estimates an Autoregressive Conditional Heteroscedastic model of economic growth, which is found to capture the volatility of the Bangladesh economy. The results suggest that an increase in the share of investment in GDP significantly increases the growth rate of GDP in normal years, but negligibly increases GDP growth in abnormal years. Abnormalities in the economy arise from war, political turmoil and natural disasters. The key finding is that export growth has significantly increased economic growth through its positive impact on total factor productivity in the economy. The contribution of exports to economic growth was more pronounced during 1982-90 when the government pursued a policy of trade liberalisation and structural reform, and political turmoil was not persistent. This finding is not sensitive to the choice of the model or the estimation technique.

Suggested Citation

  • Shamshad Begum & Abul Shamsuddin, 1998. "Exports and economic growth in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 89-114.
  • Handle: RePEc:taf:jdevst:v:35:y:1998:i:1:p:89-114
    DOI: 10.1080/00220389808422556

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    References listed on IDEAS

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    Cited by:

    1. Saima Siddiqui & Sameena Zehra & Sadia Majeed & Muhammad Sabihuddin Butt, 2008. "Export-Led Growth Hypothesis in Pakistan: A Reinvestigation Using the Bounds Test," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 13(2), pages 59-80, Jul-Dec.
    2. Maryam Asghari, 2012. "Environmental Kuznets Curve and Growth Source in Iran," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 59(5), pages 609-623, December.
    3. Khan, Md. Tareq Ferdous & Kundu, Nobinkhor, 2012. "Future Contribution of Export and Import to GDP in Bangladesh: A Box-Jenkins Approach," MPRA Paper 65153, University Library of Munich, Germany, revised 15 Jun 2012.
    4. 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.
    5. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.
    6. Fugarolas, Guadalupe & Mañalich, Isis & Matesanz, David, 2007. "Are Exports Causing Growth? Evidence On International Trade Expansion In Cuba, 1960-2004," MPRA Paper 6323, University Library of Munich, Germany.

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