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Domestic Credit, School Enrollment & Hi-Tech Exports in Bangladesh

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  • Sandip SARKER
  • Arifuzzaman KHAN
  • Rezwan MAHMOOD

Abstract

This paper examines the relationship among hi-tech exports, school enrollment (tertiary) and domestic credit to private sector in Bangladesh through co-integration and vector error correction model (VECM) over the period 1989 to 2014. Given the high sustainability of hi-tech exports we want to examine whether increase in domestic credit to private sector as well as increase in school enrollment (tertiary) affects hi-tech exports in Bangladesh in the long run or not. The Johansen cointegration tests indicate that all the variables are co-integrated with two cointegrating vector. The VECM long run causality model indicates that there is a long run causality running from school enrollment tertiary and domestic credit to private sector to Hi-Tech exports in Bangladesh. However in the short run no causal relationships have been found among the variables. The implication of our findings is that in Bangladesh if we provide a good education to our people and then provide credit facilities to them, it is very likely that our Hi-Tech exports volume will be increased in the long run. This result can also provide important policy suggestion to the policy makers who are working for sustainable development in the area of exporting items in Bangladesh.

Suggested Citation

  • Sandip SARKER & Arifuzzaman KHAN & Rezwan MAHMOOD, 2016. "Domestic Credit, School Enrollment & Hi-Tech Exports in Bangladesh," Romanian Economic Business Review, Romanian-American University, vol. 11(1), pages 7-23, March.
    • Handle: RePEc:rau:journl:v:11:y:2016:i:1:p:7-23
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    References listed on IDEAS

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