IIUC Business Review

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    Nexus between exports, imports and foreign direct investment: Evidence from Bangladesh
    (International Islamic University Chittagong, 2021-12) Daror, Hudayfe Osman; Ahmed, Zobayer; Muhumed, Muhumed Mohamed
    Foreign Direct Investment (FDI) plays a significant role in international trade (IT). Numerous recent studies focused on the FDI-IT nexus and found a strong interrelation between the two variables. The current research empirically examines the causal linkage among imports, exports, and FDI in Bangladesh, utilizing available time-series data from 1980-2015. The study finds that the long-run equilibrium association exists among Exports, Imports and FDI. The study also finds unidirectional causality running from imports and exports to FDI, meaning the rise and fall of exports and imports cause an increase or decrease in FDI of Bangladesh, respectively, and there is no other long-run causality found among other variables. In the short run, unilateral causality is running from imports to FDI, imports to export and exports to FDI. These empirical findings mean that expanding trade can be used to attract more FDI in Bangladesh. Therefore, the study findings strongly support the notion that international trade (exports and imports) stem from the attraction of FDI.
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    Impact of Exchange Rate Depreciation on Export of Bangladesh: An ARDL (Autoregressive Distributed Lag) Model
    (CRP, International Islamic University Chittagong, 2007-08) Ahmmed, Monir; Alam, Rafayet
    This paper is to examine the impact of depreciation of exchange rate on export of Bangladesh. An Autoregressive Distributed Lag Model (having lags of both dependent and independent variables) has been used to test this. From the analysis it has been found that depreciation at some lags has positive impact on export. But current-period depreciation has negative impact on export (this result goes with the findings of Fang. Lai, Miller. 2005 & Fang. Miller. 2004 where they showed that too much fluctuation in exchange rate might have offset the growth in export generated by depreciation). However. both the relations are statistically significant. These findings somehow go with the celebrated .l-curve effect which points out deterioration before an improvement in a country's trade balance resulting from a depreciation or devaluation. So in Bangladesh depreciation might not be a correct choice ifwe want to increase export within a short span of time. This analysis also shows that the income of the consumers of our exportable does not have significant effect on our export i.e. our export is income inelastic.