—Existing literature on export-led growth for
developing countries is voluminous but inconclusive. The
emerging economy of Bangladesh is registering spectacular
growth in both exports and output in recent decades. This
scenario has sparked a rise in research on the export-output
relationship for the country. The results are nevertheless
ambiguous. In a study over the liberalized regime from 1979 to
2010, this study engages a relatively new method of the
autoregressive distributive lag (ARDL) bounds test approach,
and finds strong evidence on export-led growth for Bangladesh
in both the long run and the short run. Imports, however, do
not show any significant relationship with output. The trade
reform that began in Bangladesh in the late 1970s appears to
have benefited the country’s economic growth.
—ARDL bounds test, Bangladesh economy,
export-led growth, level relationship, trade liberalization.
Biru Paksha Paul is with the State University of New York at Cortland
(SUNY Cortland) (e-mail: email@example.com).
Cite:Biru Paksha Paul, "Testing Export-Led Growth in Bangladesh: An ARDL Bounds Test Approach," International Journal of Trade, Economics and Finance vol.5, no.1, pp. 1-5, 2014.