IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v35y1998i1p89-114.html
   My bibliography  Save this article

Exports and economic growth in Bangladesh

Author

Listed:
  • Shamshad Begum
  • Abul Shamsuddin

Abstract

This study investigates the effect of exports on economic growth in Bangladesh, based on a two-sector growth model. Using annual data for the period 1961-92, the article estimates an Autoregressive Conditional Heteroscedastic model of economic growth, which is found to capture the volatility of the Bangladesh economy. The results suggest that an increase in the share of investment in GDP significantly increases the growth rate of GDP in normal years, but negligibly increases GDP growth in abnormal years. Abnormalities in the economy arise from war, political turmoil and natural disasters. The key finding is that export growth has significantly increased economic growth through its positive impact on total factor productivity in the economy. The contribution of exports to economic growth was more pronounced during 1982-90 when the government pursued a policy of trade liberalisation and structural reform, and political turmoil was not persistent. This finding is not sensitive to the choice of the model or the estimation technique.

Suggested Citation

  • Shamshad Begum & Abul Shamsuddin, 1998. "Exports and economic growth in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 89-114.
    • Handle: RePEc:taf:jdevst:v:35:y:1998:i:1:p:89-114
    DOI: 10.1080/00220389808422556
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00220389808422556
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00220389808422556?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Leamer, Edward E., 1985. "Vector autoregressions for causal inference?," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 22(1), pages 255-304, January.
    2. Dornbusch, Rudiger, 1990. "Policies to Move from Stabilization to Growth," CEPR Discussion Papers 456, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert C. M. Beyer & Konstantin M. Wacker, 2024. "Good enough for outstanding growth: The experience of Bangladesh in comparative perspective," Development Policy Review, Overseas Development Institute, vol. 42(2), March.
    2. Azmat Gani, 2019. "Globalisation and human development: Does export type matter?," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 2235-2251, July.
    3. Adeel Saleem & Maqbool H. Sial & Ahmed Raza Cheema, 2023. "Does an asymmetric nexus exist between exports and economic growth in Pakistan? Recent evidence from a nonlinear ARDL approach," Economic Change and Restructuring, Springer, vol. 56(1), pages 297-326, February.
    4. Ben Yedder, Nadia & El Weriemmi, Malek & Bakari, Sayef, 2023. "Boosting Economic Growth in Angola: Unveiling the Dynamics of Domestic Investments and Exports," MPRA Paper 119480, University Library of Munich, Germany.
    5. Harrison, Ann E. & Rodriguez-Clare, Andres, 2009. "Trade, Foreign Investment, and Industrial Policy," MPRA Paper 15561, University Library of Munich, Germany.
    6. Dawson, P.J., 2006. "The export-income relationship and trade liberalisation in Bangladesh," Journal of Policy Modeling, Elsevier, vol. 28(8), pages 889-896, November.
    7. A. H. M. Shahriar & Al Amin Biswas & Nishat Rumaly & Md. Johir Rayhan & Mohammad Jahangir Alam & Uttam Golder, 2024. "Macroeconomic Stability in Bangladesh: Unraveling the Nexus between Exchange Rate, Inflation, and Export Dynamics through Nonlinear Modeling," International Journal of Economics and Financial Issues, Econjournals, vol. 14(6), pages 174-181, October.
    8. Fugarolas, Guadalupe & Mañalich, Isis & Matesanz, David, 2007. "Are Exports Causing Growth? Evidence On International Trade Expansion In Cuba, 1960-2004," MPRA Paper 6323, University Library of Munich, Germany.
    9. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4039-4214, Elsevier.
    10. Shimu Afroza Ahammed & Islam Md. Shahidul, 2018. "Impacts of Macro Economic Variables on the RMG Export Growth of Bangladesh," Economics and Business, Sciendo, vol. 32(1), pages 112-125, June.
    11. Emilio J. Medina-Smith, 2000. "Is The Export-Led Growth Hypothesis Valid For Developing Countries? A Case Study Of Costa Rica," UNCTAD Blue Series Papers 7, United Nations Conference on Trade and Development.
    12. Mohammad A. Razzaque & Sayema Haque Bidisha & Bazlul Haque Khondker, 2017. "Exchange Rate and Economic Growth," Journal of South Asian Development, , vol. 12(1), pages 42-64, April.
    13. Saima Siddiqui & Sameena Zehra & Sadia Majeed & Muhammad Sabihuddin Butt, 2008. "Export-Led Growth Hypothesis in Pakistan: A Reinvestigation Using the Bounds Test," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 13(2), pages 59-80, Jul-Dec.
    14. Maryam Asghari, 2012. "Environmental Kuznets Curve and Growth Source in Iran," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 59(5), pages 609-623, December.
    15. Khan, Md. Tareq Ferdous & Kundu, Nobinkhor, 2012. "Future Contribution of Export and Import to GDP in Bangladesh: A Box-Jenkins Approach," MPRA Paper 65153, University Library of Munich, Germany, revised 15 Jun 2012.
    16. Yaya Keho, 2018. "The Causal Nexus between Exports and Economic Growth: Evidence on the Role of Omitted Variables," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 335-344.
    17. Asmawi Hashim & Norimah Rambeli & Norasibah Abdul Jalil & Normala Zulkifli & Emilda Hashim & Noor Al-Huda Abdul Karim, 2019. "Does Export Led Growth Hypothesis Hold Under World Crisis Recovery Regime in Malaysia?," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 9-19, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gossé, Jean-Baptiste & Guillaumin, Cyriac, 2013. "L’apport de la représentation VAR de Christopher A. Sims à la science économique," L'Actualité Economique, Société Canadienne de Science Economique, vol. 89(4), pages 309-319, Décembre.
    2. Marin, Dalia, 1992. "Is the Export-Led.Growth Hypothesis Valid for Industrialized Countries?," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 678-688, November.
    3. Greg Hannsgen, 2004. "Gibson’s Paradox, Monetary Policy, and the Emergence of Cycles," Macroeconomics 0407029, University Library of Munich, Germany.
    4. Eduardo Borensztein & Carmen M. Reinhart, 1994. "The Macroeconomic Determinants of Commodity Prices," IMF Staff Papers, Palgrave Macmillan, vol. 41(2), pages 236-261, June.
    5. Caroline Flammer, 2015. "Does Corporate Social Responsibility Lead to Superior Financial Performance? A Regression Discontinuity Approach," Management Science, INFORMS, vol. 61(11), pages 2549-2568, November.
    6. Ariane Tichit, 1998. "Reprise économique dans les pays post-communistes : application d'un modèle de durée," Économie et Prévision, Programme National Persée, vol. 136(5), pages 73-92.
    7. Serven, Luis, 1997. "Uncertainty, instability, and irreversible investment : theory, evidence, and lessons for Africa," Policy Research Working Paper Series 1722, The World Bank.
    8. Alessio Moneta, 2005. "Causality in macroeconometrics: some considerations about reductionism and realism," Journal of Economic Methodology, Taylor & Francis Journals, vol. 12(3), pages 433-453.
    9. Joshua J. Lewer & Hendrik Van den Berg, 2003. "How Large Is International Trade’s Effect on Economic Growth?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 363-396, July.
    10. Alessandro Rebucci, 2010. "Is growth exogenous? Evidence from the 1970s and 1980s," Applied Economics, Taylor & Francis Journals, vol. 42(5), pages 535-543.
    11. Adrian C. Darnell, 1994. "A Dictionary Of Econometrics," Books, Edward Elgar Publishing, number 118.
    12. Kevin D. Hoover & Òscar Jordà, 2001. "Measuring systematic monetary policy," Review, Federal Reserve Bank of St. Louis, vol. 83(Jul), pages 113-144.
    13. Michael Bruno, 1993. "Inflation and Growth in an Integrated Approach," NBER Working Papers 4422, National Bureau of Economic Research, Inc.
    14. Madden, Gary & Savage, Scott J., 1998. "CEE telecommunications investment and economic growth," Information Economics and Policy, Elsevier, vol. 10(2), pages 173-195, June.
    15. Cordelia Omodero, 2022. "The Role Of Corporate Tax, Earnings And Debt In Determining Dividend Policy Of Firms," Business Management, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 3 Year 20, pages 46-69.
    16. Selva Demiralp & Kevin D. Hoover, 2003. "Searching for the Causal Structure of a Vector Autoregression," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(s1), pages 745-767, December.
    17. Robert H. Rasche, 1993. "Monetary aggregates, monetary policy and economic activity," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 1-35.
    18. Ashok Parikh, 2002. "Impact of Liberalization, Economic Growth and Trade Policies on Current Accounts of Developing Countries: An Econometric Study," WIDER Working Paper Series DP2002-63, World Institute for Development Economic Research (UNU-WIDER).
    19. Finn E. Kydland & Scott Freeman, 2000. "Monetary Aggregates and Output," American Economic Review, American Economic Association, vol. 90(5), pages 1125-1135, December.
    20. Titus O. Awokuse & David A. Bessler, 2003. "Vector Autoregressions, Policy Analysis, and Directed Acyclic Graphs: An Application to the U.S. Economy," Journal of Applied Economics, Taylor & Francis Journals, vol. 6(1), pages 1-24, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:35:y:1998:i:1:p:89-114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.