Estimation of the Export Demand Function using Bilateral Trade Data: The Case of Bangladesh

Author(s)
Hussain, Mohammed Nur
Wijeweera, Albert
Dollery, Brian E
Publication Date
2007
Abstract
Trade liberalization policy represents an important policy instrument for developing countries. However, existing empirical literature on the impact of trade liberalization is ambiguous and this uncertainty also extends to Bangladesh economy. Various studies have sought to estimate econometrically the export demand function for Bangladesh as a means of clarifying the effects of trade liberalization in that country. Unfortunately, no recent studies have examined the liberalization effect on disaggregated exports in Bangladesh. In order to remedy this neglect, this article examines the likely impacts of trade liberalization policies on the disaggregated export function in Bangladesh for the period 1973–2004. The main purpose is to examine whether bilateral export elasticities are significantly different between major trading partners. If this is indeed the case, then different policies should be implemented rather than a single trade policy to enhance exports. A secondary objective is to establish whether trade liberalization has had any impact on the export sector in Bangladesh.
Citation
South Asia Economic Journal, 8(2), p. 249-264
ISSN
0973-077X
1391-5614
Link
Publisher
Sage Publications India Pvt Ltd
Title
Estimation of the Export Demand Function using Bilateral Trade Data: The Case of Bangladesh
Type of document
Journal Article
Entity Type
Publication

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