Does trade openness cause economic growth in Bangladesh?
No Thumbnail Available
Date
2021-03-22
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
(CRP), International Islamic University Chittagong, Bangladesh,
Abstract
Abstract
Bangladesh has followed a restrictive trade policy immediately after its liberation. But the
system was proven wrong, and gradually it opened up its market to others and started to
improve its foreign trade. This paper investigates the impact of trade openness on
Bangladesh's economic growth using annual time-series data for the period from 1972-73 to
2015-16. The paper uses such econometric tools as unit root test, cointegration test and error
correction model to investigate the relationship between the variables. This study revealed a
positive association between export and GDP but the opposite relation between import and
GDP and recommended to enhance export earnings.
Description
Keywords
Export,, Import,, Remittances,, Economic Growth,, Econometric analysis,, Bangladesh