Export and Import Demand Functions of Bangladesh: A Disaggregated Approach

Mohammad Monirul Islam Sarker

doi:doi:10.11648/j.ijefm.20180602.15

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Export and Import Demand Functions of Bangladesh: A Disaggregated Approach

Mohammad Monirul Islam Sarker

Published in International Journal of Economics, Finance and Management Sciences (Volume 6, Issue 2)

Received: 22 March 2018 Accepted: 8 April 2018 Published: 18 May 2018

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Abstract

This study attempts to estimate the export and import demand functions of Bangladesh on a bilateral basis by using annual data from 1995-2015, Johansen cointegration test approach and vector error correction mechanism. The estimated results identify income as an influential determinant of both export and import demand of Bangladesh, while the influence of price is very limited. The price effect appears limited because Bangladesh’s export prices for garments are already absolutely low, so changes in prices are less significant; while for imports, the impact of trade liberalization has been greater than changing world prices.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 6, Issue 2)
DOI	10.11648/j.ijefm.20180602.15
Page(s)	66-74
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Export and Import Demand, Bilateral Model, Cointegration Test, Error Correction Mechanism, Income and Price Elasticity

References

[1]	Aziz, N. & Horsewood, N. J. (2008). Determinants of Aggregate Import Demand of Bangladesh: Cointegration and Error Correction Modelling. In The 18th International Conference (May 21-24). International Trade and Finance Association, Lisbon, Portugal.
[2]	Cochrane, D. & Orcutt, G. H. (1949). Application of Least Squares Regression to Relationships Containing Auto-Correlated Error Terms. Journal of the American Statistical Association, 44 (245), 32–61.
[3]	Cowgill, M., Luebker, M. & Xia, C. (2015). Minimum Wages in the Global Garment Industry: Update for 2015. International Labour Organization.
[4]	Dutta, D. & Ahmed, N. (1999). An aggregate import demand function for Bangladesh: A cointegration approach. Applied Economics, 31(4), 465–472.
[5]	Engle, R. F. & Granger, C. W. J. (1987). Co-integration and Error Correction: Representation, Estimation, and Testing. Econometrica, 55(2), 251–276.
[6]	Global Financial Integrity. (2017). Illicit Financial Flows to and from Developing Countries: 2005-2014.
[7]	Goswami, G. G. & Sarker, M. M. I. (2010). Exchange Rate Sensitivity of Inpayments and Outpayments of Bangladesh: An Aggregate vs. Bilateral Approach. Bank Parikrama, XXXV, 38–59.
[8]	Hossain, A. A. (2013). Trade Liberalization and Import-Demand Behavior in Bangladesh, 1974–2008. The Journal of Developing Areas, 47(2), 387–416.
[9]	Houthakker, H. S. & Magee, S. P. (1969). Income and Price Elasticities in World Trade. The Review of Economics and Statistics, 51(2), 111–125.
[10]	Hye, Q. M. A. & Mashkoor, M. (2010). Import Demand Function for Bangladesh: A Rolling Window Analysis. African Journal of Business Management, 4(10), 2150–2156.
[11]	Islam, T. (2016). An Empirical Estimation of Export and Import Demand Functions Using Bilateral Trade Data: The Case of Bangladesh. Journal of Commerce & Management Thought, 7(3), 526–551.
[12]	Johansen, S. (1988). Statistical Analysis of Cointegrating Vectors. Journal of Economic Dynamics and Control, 12, 231–254.
[13]	Kabir, R. (1988). Estimating Import and Export Demand Function : The Case of Bangladesh. The Bangladesh Development Studies, 16(4), 115–127.
[14]	Kreinin, M. E. (1967). Price Elasticities in the International Trade. The Review of Economics and Statistics, 57, 221–224.
[15]	Murad, S. M. W. (2012). Bilateral Export and Import Demand Functions of Bangladesh: A Cointegration Approach. The Bangladesh Development Studies, XXXV(1), 43–60.
[16]	Nur, M., Wijeweera, A. & Dollery, B. (2007). Estimation of the Export Demand Function using Bilateral Trade Data: The Case of Bangladesh. South Asia Economic Journal, 8(2), 249–264.
[17]	Wijeweera, A., Nur, M. & Dollery, B. (2008). Bilateral Import Demand Elasticities the Case of Bangladesh. International Research Journal of Finance & Economics, (19), 114–125.
[18]	Yule, G. U. (1926). Why do we Sometimes get Nonsense-Correlations between Time-Series ? --A Study in Sampling and the Nature of Time-Series. Journal of the Royal Statistical Society, 89(1), 1–63.

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Mohammad Monirul Islam Sarker. (2018). Export and Import Demand Functions of Bangladesh: A Disaggregated Approach. International Journal of Economics, Finance and Management Sciences, 6(2), 66-74. https://doi.org/10.11648/j.ijefm.20180602.15

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ACS Style

Mohammad Monirul Islam Sarker. Export and Import Demand Functions of Bangladesh: A Disaggregated Approach. Int. J. Econ. Finance Manag. Sci. 2018, 6(2), 66-74. doi: 10.11648/j.ijefm.20180602.15

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AMA Style

Mohammad Monirul Islam Sarker. Export and Import Demand Functions of Bangladesh: A Disaggregated Approach. Int J Econ Finance Manag Sci. 2018;6(2):66-74. doi: 10.11648/j.ijefm.20180602.15

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@article{10.11648/j.ijefm.20180602.15,
  author = {Mohammad Monirul Islam Sarker},
  title = {Export and Import Demand Functions of Bangladesh: A Disaggregated Approach},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {6},
  number = {2},
  pages = {66-74},
  doi = {10.11648/j.ijefm.20180602.15},
  url = {https://doi.org/10.11648/j.ijefm.20180602.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20180602.15},
  abstract = {This study attempts to estimate the export and import demand functions of Bangladesh on a bilateral basis by using annual data from 1995-2015, Johansen cointegration test approach and vector error correction mechanism. The estimated results identify income as an influential determinant of both export and import demand of Bangladesh, while the influence of price is very limited. The price effect appears limited because Bangladesh’s export prices for garments are already absolutely low, so changes in prices are less significant; while for imports, the impact of trade liberalization has been greater than changing world prices.},
 year = {2018}
}

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TY  - JOUR
T1  - Export and Import Demand Functions of Bangladesh: A Disaggregated Approach
AU  - Mohammad Monirul Islam Sarker
Y1  - 2018/05/18
PY  - 2018
N1  - https://doi.org/10.11648/j.ijefm.20180602.15
DO  - 10.11648/j.ijefm.20180602.15
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 66
EP  - 74
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20180602.15
AB  - This study attempts to estimate the export and import demand functions of Bangladesh on a bilateral basis by using annual data from 1995-2015, Johansen cointegration test approach and vector error correction mechanism. The estimated results identify income as an influential determinant of both export and import demand of Bangladesh, while the influence of price is very limited. The price effect appears limited because Bangladesh’s export prices for garments are already absolutely low, so changes in prices are less significant; while for imports, the impact of trade liberalization has been greater than changing world prices.
VL  - 6
IS  - 2
ER  -

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Author Information

Mohammad Monirul Islam Sarker

Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi, India

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Plain Text BibTeX RIS

APA Style

Mohammad Monirul Islam Sarker. (2018). Export and Import Demand Functions of Bangladesh: A Disaggregated Approach. International Journal of Economics, Finance and Management Sciences, 6(2), 66-74. https://doi.org/10.11648/j.ijefm.20180602.15

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ACS Style

Mohammad Monirul Islam Sarker. Export and Import Demand Functions of Bangladesh: A Disaggregated Approach. Int. J. Econ. Finance Manag. Sci. 2018, 6(2), 66-74. doi: 10.11648/j.ijefm.20180602.15

Copy | Download

AMA Style

Mohammad Monirul Islam Sarker. Export and Import Demand Functions of Bangladesh: A Disaggregated Approach. Int J Econ Finance Manag Sci. 2018;6(2):66-74. doi: 10.11648/j.ijefm.20180602.15

Copy | Download

@article{10.11648/j.ijefm.20180602.15,
  author = {Mohammad Monirul Islam Sarker},
  title = {Export and Import Demand Functions of Bangladesh: A Disaggregated Approach},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {6},
  number = {2},
  pages = {66-74},
  doi = {10.11648/j.ijefm.20180602.15},
  url = {https://doi.org/10.11648/j.ijefm.20180602.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20180602.15},
  abstract = {This study attempts to estimate the export and import demand functions of Bangladesh on a bilateral basis by using annual data from 1995-2015, Johansen cointegration test approach and vector error correction mechanism. The estimated results identify income as an influential determinant of both export and import demand of Bangladesh, while the influence of price is very limited. The price effect appears limited because Bangladesh’s export prices for garments are already absolutely low, so changes in prices are less significant; while for imports, the impact of trade liberalization has been greater than changing world prices.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Export and Import Demand Functions of Bangladesh: A Disaggregated Approach
AU  - Mohammad Monirul Islam Sarker
Y1  - 2018/05/18
PY  - 2018
N1  - https://doi.org/10.11648/j.ijefm.20180602.15
DO  - 10.11648/j.ijefm.20180602.15
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 66
EP  - 74
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20180602.15
AB  - This study attempts to estimate the export and import demand functions of Bangladesh on a bilateral basis by using annual data from 1995-2015, Johansen cointegration test approach and vector error correction mechanism. The estimated results identify income as an influential determinant of both export and import demand of Bangladesh, while the influence of price is very limited. The price effect appears limited because Bangladesh’s export prices for garments are already absolutely low, so changes in prices are less significant; while for imports, the impact of trade liberalization has been greater than changing world prices.
VL  - 6
IS  - 2
ER  -

Copy | Download