This study is conducted to revisit the empirical relationship between exports,\nimports and economic growth in Bangladesh using annual time series data\nfrom 1981 to 2017. To capture the objective, the study used Johansen\nCo-integration test and Granger-causality test in Vector Error Correction\nModel (VECM) framework. Based on the results of Johansen Co-integration\ntest, it confirms that there is statistically significant long-run equilibrium relationship\nbetween exports, imports and economic growth. The results of the\nVECM Granger Causality test assure that the disequilibrium in long-run GDP\ngrowth rate is corrected or adjusted by 24% in short-run following the next\nyear. Furthermore, the study found short-run causality running from exports\nto economic growth and from economic growth to imports. Finally, findings\nof the study will help the policy makers and development partners of Bangladesh\nto rethink about the current policies regarding the exports, imports, inflation,\ngross capital formation (investment) and economic growth.
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