Foreign trade, Imports, Remittance and Growth in Bangladesh:
An Scientific Analysis
This kind of paper investigates the origin nexus among export, importance, remittance and GDP development for Bangladesh using annual data by 1976 to 2005. The paper uses time series econometrics tools to investigate the relationship adding transfer and remittance in the model. Study discovers limited help in favor of export-led progress hypothesis pertaining to Bangladesh as exports, imports and remittance cause GDP growth just in the short run. The causal nexus is unidirectional. JEL Classifications: C32, F24, F43
Keywords: Exports, Imports, Remittances, Economic Growth and Time-Series Models
GROSS DOMESTIC PRODUCT growth of Bangladesh has been 5 per cent and above in past times decade roughly with raising exports, imports and remittance. Ratio of total operate (exports additionally imports) to GDP increased from 18. 6 percent in 1990 to around up to 29. 4 percent in 2002 (World Bank, 2005). Foreign trade growth is normally considered to be a principal determinant of creation and work growth in an economy. Also, it is argued that foreign currency offered through foreign trade earnings makes it possible for import of capital merchandise, which in turn increases production potential of an economic climate.
Exports competition causes economies of scale and speeding of technological progress (Ramos, 2001). In the early years after freedom in 1971, Bangladesh embarked on an inward-oriented advancement strategy. Accordingly, higher charges and subspecies were enforced on imports. This in turn produced an anti-export bias within Bangladesh economic system. However , since 1980s the policy program shifted toward export-promotion via import replacement. Tariff prices were decreased and quotas were also removed gradually. Industrial and transact policy had been focused to advertise export. Economic incentives are supplied, in the form of duty exemption, upon exportable items. Exclusive Export Processing Areas (EPZ) are established to draw foreign immediate investment and...