Export and Import Demand Functions of Bangladesh: A Disaggregated Approach
International Journal of Economics, Finance and Management Sciences
Volume 6, Issue 2, April 2018, Pages: 66-74
Received: Mar. 22, 2018; Accepted: Apr. 8, 2018; Published: May 18, 2018
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Author
Mohammad Monirul Islam Sarker, Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi, India
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Abstract
This study attempts to estimate the export and import demand functions of Bangladesh on a bilateral basis by using annual data from 1995-2015, Johansen cointegration test approach and vector error correction mechanism. The estimated results identify income as an influential determinant of both export and import demand of Bangladesh, while the influence of price is very limited. The price effect appears limited because Bangladesh’s export prices for garments are already absolutely low, so changes in prices are less significant; while for imports, the impact of trade liberalization has been greater than changing world prices.
Keywords
Export and Import Demand, Bilateral Model, Cointegration Test, Error Correction Mechanism, Income and Price Elasticity
To cite this article
Mohammad Monirul Islam Sarker, Export and Import Demand Functions of Bangladesh: A Disaggregated Approach, International Journal of Economics, Finance and Management Sciences. Vol. 6, No. 2, 2018, pp. 66-74. doi: 10.11648/j.ijefm.20180602.15
Copyright
Copyright © 2018 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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