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The Linkage Between Export And Income: Further Evidence From Bangladesh

Author

Listed:
  • RUHUL A. SALIM

    (School of Economics & Finance, Curtin Business School (CBS), P. O. Box U1987, Curtin University, Perth, WA 6845, Australia)

  • MOHAMMAD A. HOSSAIN

    (Department of Economics, Jahangirnagar University, Savar, Dhaka, Bangladesh)

Abstract

This article empirically re-examines the export-led growth hypothesis in the context of Bangladesh using the quarterly data from 1973:1 to 2005:4. The standard time series econometric techniques, such as cointegration and Granger causality tests within the error correction modelling (ECM) are used for this purpose. The results from cointegration analysis suggest that there is stable long-run relationship between exports and income and the results from Granger causality test based on the ECM shows unidirectional causal relationship between exports and income. Thus, these results validate the country's export expansion programs to achieve long-run income growth.

Suggested Citation

  • Ruhul A. Salim & Mohammad A. Hossain, 2011. "The Linkage Between Export And Income: Further Evidence From Bangladesh," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 56(01), pages 79-95.
  • Handle: RePEc:wsi:serxxx:v:56:y:2011:i:01:n:s0217590811004110
    DOI: 10.1142/S0217590811004110
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    References listed on IDEAS

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    1. World Bank, 2007. "World Development Indicators 2007," World Bank Publications - Books, The World Bank Group, number 8150, December.
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    Cited by:

    1. Nicholas M. Odhiambo, 2021. "Is export-led growth hypothesis still valid for sub-Saharan African countries? New evidence from panel data analysis," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 31(1), pages 77-93, April.
    2. Odhiambo, Nicholas M, 2021. "A test of exports-led growth hypothesis in Sub-Saharan African countries: Evidence from panel data analysis," Working Papers 27170, University of South Africa, Department of Economics.
    3. Adekunle Ahmed Oluwatobi & Gbadebo Adedeji Daniel & Joseph Olorunfemi Akande, 2022. "On Export and Economic Growth: A Comparative Analysis of Selected West African Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 12(4), pages 106-113, July.

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    More about this item

    Keywords

    Cointegration; error correction model; export-income relationship; Granger causality; C22; F10;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F10 - International Economics - - Trade - - - General

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