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.

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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
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
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Additional Notes ISSN 1033-4661

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