If you are experiencing problems downloading PDF or HTML fulltext, our helpdesk recommend clearing your browser cache and trying again. If you need help in clearing your cache, please click here . Still need help? Email help@ingentaconnect.com

Export response to trade liberalization in Bangladesh: a cointegration analysis

$54.78 plus tax (Refund Policy)

Buy Article:

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.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/000368400322138

Publication date: June 20, 2000

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more