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Dynamics and Causality among Exports, Imports and Income in Bangladesh

Mohammad Amzad Hossain, Laila Haseen and Nazneen Jabin
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Mohammad Amzad Hossain: Associate Professor, Department of Economics, Jahangirnagar University, Savar, Dhaka, Bangladesh.
Laila Haseen: Assistant Professor, Department of Economics, Jahangirnagar University, Savar, Dhaka, Bangladesh
Nazneen Jabin: Lecturer, Department of Economics, Jagannath University, Dhaka.

Bangladesh Development Studies, 2009, vol. 32, issue 2, 101-113

Abstract: There exists a wide range of theore tical and empirical literature on the relationship between foreign trade and economic growth in both developed and developing countries. The early literature fo cused mostly on the role of export in economic growth. The spectacular success of the outward oriented policies in the East Asian countries provided a basis for the adoption of such policies in developing countries. Accordingly, the literatu re tried to support or reject the logic of universal application of export led growth policy in developing countries. The dynamic linkages between export and import or import and income did not receive much attention in the literature. But expe rience shows that in many countries export is highly dependent on import of capital goods and intermediate inputs as well as raw materials giving a case of trivariate causality between exports, imports and economic growth.

Keywords: Dynamics and Causality; Exports; Imports; Income; Bangladesh (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Date: 2009
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