Export Response to the Reduction of Anti-Export Bias: Empirics from Bangladesh

Hossain, Mohammad A. and Karunaratne, Neil Dias (2002) Export Response to the Reduction of Anti-Export Bias: Empirics from Bangladesh. Discussion Paper No 303, School of Economics, The University of Queensland.

Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
DP303Jan02.pdf DP303Jan02.pdf application/pdf 1.25MB 1646
Author Hossain, Mohammad A.
Karunaratne, Neil Dias
Title Export Response to the Reduction of Anti-Export Bias: Empirics from Bangladesh
School, Department or Centre School of Economics
Institution The University of Queensland
Open Access Status Other
Report Number Discussion Paper No 303
Publication date 2002-01-01
Start page 1
End page 33
Total pages 33
Publisher The University of Queensland
Language eng
Subject 340201 Agricultural Economics
Abstract/Summary The paper assesses the relationship between export growth of Bangladesh and trade liberalisation, the latter being proxied by the reduction of anti-export bias. In the empirical analysis, separate supply equations for total exports, (total) manufacturing exports, and textiles and readymade garment exports have been undertaken using quarterly time series data. The empirical results, based on vector error correction modelling (VECM), show that trade liberalisation has both long run and contemporaneous effects on total exports, manufacturing exports, and textiles and readymade garment exports supply. Besides, domestic price, export price, anti-export bias reduction, the degree of openness and production capacity all have either unidirectional or bi-directional causality between them.
Keyword Bangladesh - exports
Trade liberalisation
Anti-export bias reduction
Error correction modeling
General-to-specific modeling
Granger causality
References Agosin, M.R., 1991: 'Trade Policy Reform and Economic Performance: A Review of the Issues and Some Preliminary Evidence,'UNCTAD Discussion Papers, 41, UNCTAD, Geneva. Ahmed, N., 2000: 'Export Response to Trade Liberalisation in Bangladesh: A Cointegration Analysis,' Applied Economics, 32, 1077-1084. Athukorala, P., 1998, 'Export Response to Liberalisation: The Sri Lankan Experience,' Hitotsubashi Journal of Economics, 39, 49-65. Bahmani-Oskooee, M., 1995: 'Real and Nominal Exchange Rates for 22 LDCs: 1971:1-1990:4,' Applied Economics, 27(7), 591-604. Balassa, B. 1982: Development Strategies in Semi-Industrilized Economies, New York: Oxford University Press. Banerjee, A., R.L. Lumsdaine and J.A. Stock, 1992: 'Recursive and Sequential Tests of the Unit Root and Trend-Break Hypotheses: Theory and International Evidence,' Journal of Business and Economic Statistics, 10, 271-87. Bhagawati, J.N., 1978, Foreign Trade Regimes and Economic Development: Anatomy and Consequences of Exchange Control Regimes, Ballinger Publishing Company, Cambridge, M.A. Bhargava, A., 1986: 'On the Theory of Testing for Unit Roots in Observed Time Series,' Review of Economic Studies, 53, 369-84. Clarke, R. and C. Kirkpatrick, 1992: 'Trade Policy Reform and Economic Performance in Developing Countries: Assessing the Empirical Evidence', in R. Adhikari, C. Kirkpatrick, and J. Weiss (eds.), Industrial and Trade Policy Reform in Developing Countries, Manchester: Manchester University Press. Corden, M., 1997: Trade Policy and Economic Welfare, Clarendon Press, Oxford. Dornbusch, R., 1974: 'Tariffs and Non-traded Goods', Journal of International Economics, 4, 177-85. Enders, W., 1995: Applied Econometric Time Series. New York: Wiley. Engle, R., and C. Granger, 1987: 'Co-integration and Error Correction: Representation, Estimation and Testing,' Econometrica, 55, 251-76. Gonzalo, J., 1994: 'Five Alternative Methods for Estimating Long Run Relationships', Journal of Econometrics, 60, 203-33. Granger, C.W.J. and A.A. Weiss, 1983: 'Time Series Analysis of Error-Correction Models,' in S. Karlin, T. Amemiya, and L.A. Goodman (eds.), Studies in Econometrics, Time Series and Multivariate Statistics, Academic Press, New York. Goldstein, M. and M. Khan, 1985: 'Income and Price Elasticities in Foreign Trade', in R. Jones and P. Kenen (ed.) Handbook of International Economics, Vol. 2, 1041-1105, North-Holland, Armsterdam. Gregory, A.W. and B. E. Hansen, 1996: 'Residual-Based Tests for Cointegration in Models with Regime Shifts,' Journal of Econometrics, 70, 99-126. Helleiner, G.K., 1995: Manufacturing for Exports in the Developing World : Problems and Possibilities, Routledge, London and New York. Hendry, D.F., 1995: Dynamic Econometrics, Oxford: Oxford University Press. Johansen, S., and K. Juselius, 1990: 'Maximum Likelihood Estimation and inference on Cointegration-with Applications to the Demand for Money,' Oxford Bulletin of Economics and Statistics, 52, 169-210. Joshi, V., and I.M.D., Little, 1996: India's Economic Reforms 1991-2001, Delhi, Oxford University Press. Krueger, A.O., 1997: 'Trade Policy and Economic Development: How We Learn', American Economic Review, 87, Little, I.M.D., T. Scitovosky and M. Scott, 1970: Industry and Trade in Some Developing Countries: A Comparative Study, Oxford University Press for OECD, London. Lisman, J.H.C., and J. Sandee, 1965: 'Derivation of Quarterly Figures from Annual Figures', Applied Statistics, 13(2), 87-90. Maddala, G.S. and I-M. Kim, 1998: Unit Roots, Cointegration, and Structural Change, Cambridge: Cambridge University Press. Murray, T. and P.J. Ginman, 1976: 'An Empirical Examination of the Traditional Aggregate Import Demand Model', Review of Economics and Statistics, 48, 75-80. Michaely, M., D. Papageorgiou and A. Choksi, 1991: Liberalising Foreign Trade, Oxford University Press, vols. 1-7. Nelson, C.R. and C.I. Plosser, 1982: 'Trends and Random Walks in Macroeconomic Time Series,' Journal of Monetary Economics, 10, 139-62. Orcutt, G., 1950: 'Measurement of Price Elasticities in International Trade', Review of Economics and Statistics, 32, 117-132. Patterson, K., 2000: An Introduction to Applied Econometrics: A Time Series Approach, Mcmillan. Perron, P., 1989: 'The Great Crash, the Oil Price Shock and the Unit Root Hypothesis,' Econometrica, 57, 1361-1401. Pesaran, H.M. and B. Pesaran, 1997: Microfit 4.0. An Interactive Econometric Software Package, Oxford University Press, Oxford. Reidel, J., 1993: 'Vietnam: On the Trail of the Tigers', World Economy, 16(4), 401-23. Shand, R. and M. Alauddin, 1997: Economic Profiles in South Asia, Australian National University, Canberra. Sims, C., 1980: 'Macroeconomics and Reality,' Econometrica, 48, 1-48. Thomas, V., and J. Nash, 1991: 'Reform of Trade Policy: Recent Evidence from Theory and Practice', The World Bank Research Observer, 2(6), 219-40. Urbain, J-P., 1995: 'Partial Versus Full System Modelling of Cointegrated Systems: An Empirical Illustration', Journal of Econometrics, 69, 177-210. Weiss, J., 1992: 'Export Response to Trade Reforms: Recent Mexican Experience', Development Policy Review, 10, 1, 43-60. World Bank, 1996: World Development Report 1996, Washington D. C. Zivot, E. and D.W.K. Andrews, 1992: 'Further Evidence on the Great Crash, the Oil Price Shock, and the Unit Root Hypothesis,' Journal of Business and Economic Statistics, 10, 251-270.
Additional Notes ISSN 1033-4661

Document type: Department Technical Report
Collection: Discussion Papers (School of Economics)
Version Filter Type
Citation counts: Google Scholar Search Google Scholar
Created: Thu, 05 Feb 2004, 10:00:00 EST