On Export-Led Growth: Is Manufacturing Exports a New Engine of Growth for Bangladesh?

Hossain, Mohammad A and Karunaratne, Neil Dias (2001) On Export-Led Growth: Is Manufacturing Exports a New Engine of Growth for Bangladesh?. Discussion Paper No 297, School of Economics, The University of Queensland.

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Author Hossain, Mohammad A
Karunaratne, Neil Dias
Title On Export-Led Growth: Is Manufacturing Exports a New Engine of Growth for Bangladesh?
School, Department or Centre School of Economics
Institution The University of Queensland
Open Access Status Other
Report Number Discussion Paper No 297
Publication date 2001-12-01
Start page 1
End page 32
Total pages 32
Publisher The University of Queensland
Language eng
Subject 340200 Applied Economics
Abstract/Summary The study attempts to empirically verify the export-led growth hypothesis for Bangladesh. In this context, we examine whether manufacturing exports has become a new engine of export-led growth replacing total exports, as claimed by the so-called de novo hypothesis. The empirical analysis, based on the vector error correction modelling (VECM), suggests that both total exports and manufacturing exports have both long run and contemporaneous effects on the growth of GDP as well as manufacturing output. According to the non-nested tests, total exports emerges as the engine of export-led growth (i.e., GDP). For manufacturing output, however, both total exports and manufacturing exports emerge as engines of growth. Therefore, manufacturing exports is not the sole determinant of the export-led growth for Bangladesh.
Keyword De novo hypothesis
Encompassing principle
Export-led growth
'General to specific' modelling
Innovation accounting
Non-nested tests
Vector error correction modelling
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Additional Notes ISSN 1033-4661

Document type: Department Technical Report
Collection: Discussion Papers (School of Economics)
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Created: Thu, 05 Feb 2004, 10:00:00 EST