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Yifan Lei, Cuiping Li
Published: 8 February 2021
SHS Web of Conferences, Volume 96; doi:10.1051/shsconf/20219601010

Abstract:
In the context of COVID-19, international trade has been strongly impacted, and it is of great significance to accelerate trade exchanges with countries along the "Belt and Road" to achieve trade transformation. This paper uses the time-varying stochastic frontier gravity model to measure trade efficiency based on the data of China and South Asia from 2000 to 2019. The empirical results show that economic scale and population have a positive impact on trade. China's GDP growth is not conducive to the growth of bilateral trade volume, and distance is no longer a factor hindering trade. Trade inefficiency has a great impact on trade. Among them, whether to sign a free trade agreement, the quality of port infrastructure, the simple average tax rate of all products, and political risks have a more significant impact on the trade coefficient. The trade potential between China and South Asian countries is very large and different countries are uneven. China has high trade efficiency with Sri Lanka, Pakistan, India, and Bangladesh, while trade with Bhutan has extremely low efficiency, and trade with Maldives and Nepal is average. Based on the above empirical results and combined with the current epidemic situation, the corresponding conclusions and countermeasures are put forward. For example, exporters should continue to innovate to promote trade transformation and diversified development; combine the western development strategy to promote trade and South Asian exchanges; reduce trade tariff barriers between the two countries; Jointly maintain the security and political situation of the two countries.
, Chandan Kumar Roy
International Trade, Politics and Development; doi:10.1108/itpd-08-2020-0076

Abstract:
PurposeExchange rate uncertainty leads to an indecisive environment for imports and exports that would condense international trade, foreign direct investment, trade earnings, trade volumes, economic growth and welfare. This study aims to examine, empirically, the effect of exchange rate uncertainty on bilateral trade performance, focusing on eight SAARC member economies using the popular modified gravity model of trade.Design/methodology/approachThe paper includes eight SAARC members – Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka panel data set over the period 2005–2018. The authors consider both standardized value (standard deviation) and conditional variance model to determine volatility of exchange rate. Primarily, ordinary least squares, random effects and fixed effects estimation techniques are employed to investigate the impact of exchange rate volatility. Endogeneity and robustness of the findings have been tested using the simultaneity-adjusted model and dynamic panel data two-step system GMM estimation techniques.FindingsEmpirical findings endorse the view that exchange rate volatility lowers trade flows in the SAARC regions. However, this adverse effect of exchange rate uncertainty on trade is pretty small. The negative correlation between exchange rate volatility and bilateral trade remains consistent and significant after controlling of simultaneous causality, autocorrelation, year effects, country-pair heterogeneity and endogeneity irrespective of panel data estimation techniques and different measures of volatility.Originality/valueThe present paper is original work.
Rony Masud
Technology audit and production reserves, Volume 4, pp 45-52; doi:10.15587/2706-5448.2020.210854

Abstract:
The object of research is the process of assessing two different situations before and after COVID-19, as well as recognizing these problems and ways to minimize losses, using the example of Bangladesh. This paper describes the economy of Bangladesh before the outbreak of the pandemic, the relationship between the two different sides of the economy, the likely impact of this pandemic in the coming fiscal years, and proposals that can minimize the risks of loss.The global economy is linked through cross-border flows of goods, services, financial capital, foreign direct investment, remittances, exchange rates, know-how, people, resources, experts, and international banking. Therefore, the most significant negative impacts on Bangladesh are the decline in exports of ready-made garments, the cessation of tourism and air travel, a decrease in the number of financial transactions, the closure of commercial firms, a decrease in local consumption, and many entrepreneurs and workers are left without work. Over the past 30 years, the country's GDP has been growing. This gave the country the fastest growing economy in the Asia-Pacific region, even considering the fact that it is a land of natural disasters such as floods, cyclones, droughts, famines, storm surges, river bank erosion, earthquakes, droughts, salinization of groundwater and tsunamis. In addition, Bangladesh has a track record of accelerating GDP growth when the world faced a global recession called the Wal-Mart effect.During the work, general scientific and special research methods were used. Data included Bangladesh's real GDP, reserves, exports, imports, remittances, and foreign aid.It has been proven that to stimulate the economy, governments must take both fiscal and monetary measures, and policies and rules will be more effective if fiscal and monetary policies are well aligned.
Moshfequl Islam Rajib, Redwanur Rahman
European Scientific Journal ESJ, Volume 16; doi:10.19044/esj.2020.v16n10p38

Abstract:
Among various stimulus for growth in economy, Foreign Direct Investment (FDI) is being considered as a significant one even though there are lot of studies that shows otherwise. The relation of FDI and economic growth is been studied vigorously, but there is hardly any study in-depth about Bangladesh which can give us a rich insight into economic growth and bring out other factors to the picture of economic growth. To do that, this study explores the impact of FDI inflows on economic growth in Bangladesh in a period of 1989-2017 employing time series analysis techniques that recognize the problem of nonstationary. To ensure the regression is valid the Unit root test and Cointegration test is been used. Findings from empirical results show as FDI inflow, government consumption, population size and joining WTO have a positive impact on economic growth. Also, the exchange rate seems to be less significant in economic growth.
Bangladesh's Macroeconomic Policy; doi:10.1007/978-981-15-1244-5

The publisher has not yet granted permission to display this abstract.
Luna Ghimire, Ajay Kumar Shah, Ram Kumar Phuyal
Journal of World Economic Research, Volume 9; doi:10.11648/j.jwer.20200901.20

Abstract:
Using time series data of the last twenty-seven years (1990 to 2016), this study tries to go in-depth regarding the relationship between macroeconomic variables and its impact on economic growth of Nepal. Further, this study also compares the economic growth of Nepal with six Asian countries such as Bangladesh, Bhutan, China, India, Pakistan and Sri Lanka. The study is based on secondary data which are extracted from a legitimate source of World Bank. The dependent variable of this study is Gross Domestic Product (GDP) growth (annual%). To observe the GDP growth, some independent variables like exchange rate, export of goods and services, Foreign Direct Investment (FDI) net flow, Gross Fixed Capital Formation (GFCF), import of goods and services and inflation are chosen. Based on the variables, statistical tools such as multiple linear regression, Karl Pearson's correlation, and trend analysis are run. As per the result, exchange rate, GFCF, and import have a significant impact on the economic growth of Nepal while export, FDI, and inflation do not have a significant impact. Further, the cross-country evidence shows that Bangladesh and India have a significant positive GDP growth trend, while Bhutan and Sri Lanka have a positive GDP growth trend but do not have a significant growth. Also, China, Nepal, and Pakistan do not have a significant growth and their growth trend is negative. Based on the results and analysis it is suggested that a strong exchange rate leads low cost of production with cheap imports and also helps to control inflation due to low prices of foreign goods and services. In this context, the policymaker should initiate to make tight policies against the reduction of inflation in the country.
Papi Halder
Business, Management and Economics Research pp 170-175; doi:10.32861/bmer.512.170.175

Abstract:
This study is about the impact of selected macroeconomic variables on economic growth of Bangladesh. Economic growth of Bangladesh is measured in terms of annual nominal GDP growth rate. Least squared regression model has been employed considering exchange rate, export, import and inflation rate as independent variables and gross domestic product as the dependent variable in this study. The results reveal that export and import have significant positive impact on GDP growth rate. The other variables (exchange rate and inflation) are not significant, indicating that there exists no significant relationship among the variables. The findings will help the policy makers to make policies concerning the country’s economic growth to remain robust in the near future.
M. Rahman
Financial Markets, Institutions and Risks, Volume 3; doi:10.21272/fmir.3(3).122-130.2019

The publisher has not yet granted permission to display this abstract.
Sabiha Binta Hasan, Roksana Akhter, Al Amin Al Abbasi, Subrata Saha
American Journal of Trade and Policy, Volume 6, pp 41-48; doi:10.18034/ajtp.v6i1.346

Abstract:
In Bangladesh, remittance is one of the most important economic variables in recent times as it has an impact on economic growth, helps in balancing balance of payments, increasing foreign exchange reserves, enhancing national savings and increasing velocity of money. For about two decades remittance has been contributing around 35% of export earnings. Moreover, it is greater than foreign aid and thus helps in lessening dependence on foreign aid remittance gets momentum in recent time in Bangladesh and is the second largest sector of foreign currency earnings after the garment; sector. If cost of imported raw materials is deducted from the foreign currency earning of the garments sector thanit becomes the largest sector of foreign currency earnings. Remittance earning ; increasing day by day but at a lower rate than the increase in emigration from Bangladesh due to the increasing share of unskilled or semi-skilled labors than the professionals in international migration. The share of remittance in GNI (Gross National Income) is increasing day by day. Remittance affects almost all the macro-economic indicators of a country positively. Though there are also negative sides of remittance earning e.g. brain drain, its overall contribution to Bangladesh economy is very much effective.
, Gazi Salah Uddin
Published: 23 February 2019
Abstract:
Stock exchange and interest rate are two crucial factor of economic growth of a country. The impacts of interest rate on stock exchange provide important implications for monitory policy, risk management practices, financial securities valuation and government policy towards financial markets. This study seeks evidence supporting the existence of market efficiency on the Dhaka Stock Exchange (DSE) based on the daily general price index 1994 to 2005 and also shows empirical relationship between stock index and interest rate in Bangladesh based on monthly data from May 1992 to June 2004. Stationary of market return is tested and found DSE Index does not follow random walk model indicate DSE is not efficient in week form. The linear relationship between share price and interest rate, share price and growth of interest rate, growth of share price and interest rate, and growth of share price and growth of interest rate were determined through ordinary least-square (OLS) regression. For all of the cases, included and excluded outlier, it is found that Interest Rate has significant negative relationship with Share Price and Growth of Interest Rate also has significant negative relationship with Growth of Share Price. So if the interest rate is considerably controlled in Bangladesh than it will be the great benefit of Dhaka Stock Exchange through demand pull way of more investor in share market and supply pull way of more extensional investment of companies.
, Gazi Salah Uddi
Published: 23 February 2019
Abstract:
Stock exchange and interest rate are two crucial factors of economic growth of a country. The impacts of interest rate on stock exchange provide important implications for monitory policy, risk management practices, financial securities valuation and government policy towards financial markets. This study seeks evidence supporting the existence of share market efficiency based on the monthly data from January 1988 to March 2003 and also shows empirical relationship between stock index and interest rate for fifteen developed and developing countries- Australia, Bangladesh, Canada, Chile, Colombia, Germany, Italy, Jamaica, Japan, Malaysia, Mexico, Philippine, S. Africa, Spain, and Venezuela. Stationarity of market return is tested and found none of this stock market follows random walk model, means not efficient in weak form. To investigate the reasons of market inefficiency, relationship between share price and interest rate, and changes of share price and changes of interest rate were determined through both time series and panel regressions. For all of the countries it is found that interest rate has significant negative relationship with share price and for six countries it is found that changes of interest rate has significant negative relationship with changes of share price. So, if the interest rate is considerably controlled for these countries, it will be the great benefit of these countries’ stock exchange through demand pull way of more investors in share market, and supply push way of more extensional investment of companies.
Mahmudul Alam, Gazi Salah Uddin
Published: 1 January 2019
by RePEc
Abstract:
Stock exchange and interest rate are two crucial factor of economic growth of a country. The impacts of interest rate on stock exchange provide important implications for monitory policy, risk management practices, financial securities valuation and government policy towards financial markets. This study seeks evidence supporting the existence of market efficiency on the Dhaka Stock Exchange (DSE) based on the daily general price index 1994 to 2005 and also shows empirical relationship between stock index and interest rate in Bangladesh based on monthly data from May 1992 to June 2004. Stationary of market return is tested and found DSE Index does not follow random walk model indicate DSE is not efficient in week form. The linear relationship between share price and interest rate, share price and growth of interest rate, growth of share price and interest rate, and growth of share price and growth of interest rate were determined through ordinary least-square (OLS) regression. For all of the cases, included and excluded outlier, it is found that Interest Rate has significant negative relationship with Share Price and Growth of Interest Rate also has significant negative relationship with Growth of Share Price. So if the interest rate is considerably controlled in Bangladesh than it will be the great benefit of Dhaka Stock Exchange through demand pull way of more investor in share market and supply pull way of more extensional investment of companies.
Mahmudul Alam, Gazi Salah Uddi
Published: 1 January 2019
by RePEc
Abstract:
Stock exchange and interest rate are two crucial factors of economic growth of a country. The impacts of interest rate on stock exchange provide important implications for monitory policy, risk management practices, financial securities valuation and government policy towards financial markets. This study seeks evidence supporting the existence of share market efficiency based on the monthly data from January 1988 to March 2003 and also shows empirical relationship between stock index and interest rate for fifteen developed and developing countries- Australia, Bangladesh, Canada, Chile, Colombia, Germany, Italy, Jamaica, Japan, Malaysia, Mexico, Philippine, S. Africa, Spain, and Venezuela. Stationarity of market return is tested and found none of this stock market follows random walk model, means not efficient in weak form. To investigate the reasons of market inefficiency, relationship between share price and interest rate, and changes of share price and changes of interest rate were determined through both time series and panel regressions. For all of the countries it is found that interest rate has significant negative relationship with share price and for six countries it is found that changes of interest rate has significant negative relationship with changes of share price. So, if the interest rate is considerably controlled for these countries, it will be the great benefit of these countries’ stock exchange through demand pull way of more investors in share market, and supply push way of more extensional investment of companies.
Bokhtiar Hasan, Sm Nahidul Islam,
Indian Economic Review, Volume 53, pp 369-383; doi:10.1007/s41775-019-00037-6

The publisher has not yet granted permission to display this abstract.
Afroza Ahammed Shimu,
Economics and Business, Volume 32, pp 112-125; doi:10.2478/eb-2018-0009

Abstract:
The ready-made garments (RMG) sector of Bangladesh is considered as a key driver for the Bangladeshi Economy. This paper tries to examine the impacts of macroeconomic variables on the RMG export growth of this country. For this purpose, secondary data was collected from various sources. Multiple linear regression model was applied to measure the effects of macroeconomic variables on the RMG export growth. Trade Entropy and the Competitiveness Index were applied to understand the status of RMG sector in the world market. After that, to check the accuracy of the regression model, three types of econometric problems were tested in this study. Firstly, heteroscedasticity problem was tested by graphical presentation. Secondly, auto-correlation problem was tested by Durbin Watson test. Thirdly, multicollinearity problem was tested by correlation matrix and Variance Influence Factor (VIF). The empirical results show that for every unit increase of the growth rate of official exchange rate, inflation rate, real interest rate, and female unemployment rate; the growth rate of RMG export decreases by 1.159, 0.055, 0.034, and 0.068 units, respectively.
Abdullahil Mamun, Shahanara Basher, Nazamul Hoque, Md Hasmat Ali
Management and Accounting Review (MAR), Volume 17, pp 123-144; doi:10.24191/mar.v17i1.711

Abstract:
The study aims to evaluate the causality linkage between stock market development (SMD) and growth of the economy in Bangladesh. Using time series data of quarterly frequency through 2000Q1-2017Q4 and employing the Johansen cointegration approach the study reveals that there are long-run co-integrating relationships among the variables, namely, GDP, development of the stock market, net interest spread, real effective exchange rate and financial depth. The Vector Error Correction Model (VECM) confirms the presence of a long-term equilibrium relationship between GDP and other variables such as regressors as the system is found to be stable in the long-run. As revealed from the study, the short run positive impact of SMD on the growth of the Bangladesh economy sustains in the long run, which is also true for financial depth. However, financial deepening has a relatively large contribution to the output growth of Bangladesh than SMD. Granger causality tests assert that the causal association is unidirectional that runs from SMD to output growth.
Abdullahil Mamun, Mohammad Hasmat Ali, Nazamul Hoque, Masrurul Mowla, Shahanara Basher
International Journal of Economics and Finance, Volume 10; doi:10.5539/ijef.v10n5p212

Abstract:
The growth performance of Bangladesh over the last one and a half decades along with the stock market development sparks the question of whether stock market development has a significant impact on economic growth of the economy. The study investigates the time series evidence of the influence of stock market development on growth of Bangladesh economy for the period 1993-2016 employing ARDL Bounds testing approach and finds stock market development has direct impact on economic growth both in the short-run as well as in the long run together with financial depth, interest rate spread and real effective exchange rate. Granger causality tests confirm a bidirectional causal relationship between stock market development and economic growth. However, the study fails to identify a system convergent to equilibrium in regard to stock market development along with other factors that has important economic implications. Persistent improvement in financial depth and fall in interest rate spread throughout the sample period with consistent performance of real effective exchange rate except some spikes in recent years raise the demand for playing the needed role by all concerned for confirming the stability of stock market and its development in order to validate the steady state of equilibrium in the long-run.
Mohammad Saiful Islam, Dulal Chandra Pattak
Studies in Business and Economics, Volume 12, pp 85-94; doi:10.1515/sbe-2017-0007

Abstract:
The purpose of the study is to identify the impact of some assumed dimensions as vital reasons for investment sluggishness in Bangladesh resulting stabilized GDP growth rate around 6 percent over last decade in spite of having some favorable microeconomic and macroeconomic indicators such as controlled inflation rate, huge foreign exchange reserve, export growth etc. The study is descriptive in nature where correlation, regression and trend analysis have been conducted from the data of primary and secondary sources. The result of the analysis shows that mainly five important dimensions of investment sluggishness named high lending interest rate, corruption in public and private organizations, political unrest, inadequate power generation and supply and infrastructure problem are significantly affecting investment sluggishness in Bangladesh resulting stabilized GDP growth rate. At the end of the research paper, some measures have been recommended to overcome the obstacles of investment growth.
M. Muzahidul Anam Khan, A. K. M. Atiqur Rahman
Published: 1 January 2017
The Journal of Developing Areas, Volume 51, pp 119-136; doi:10.1353/jda.2017.0035

The publisher has not yet granted permission to display this abstract.
, Ashoke Kumar Sarker, M. Nurul Amin, M. Sumon Miah
Published: 1 September 2016
Aquacultural Engineering, Volume 74, pp 62-69; doi:10.1016/j.aquaeng.2016.06.001

Abstract:
Fisheries is an emerging sector in Bangladesh producing about 3.50 million tons of fish annually of which aquaculture accounts for 2.00 million tons. In intensive aquaculture, pond water gets polluted due to high stocking density and large amount of supplemental feeding results in huge accumulation of unused feed and faeces in the pond bottom. The accumulated bottom sludge depletes dissolved oxygen (DO) and releases harmful gases due to excessive use of chemicals and lack of water exchange facilities. These have negative impact on fish production and economic performance, through disease outbreak, mortality, poor feed conversion ratio (FCR), specific growth rate (SGR) and bad odor in fish muscles. This study was undertaken to develop a sludge remover for cleaning sludge from the intensive fish farming pond and to find the impact of sludge removal on water quality and growth of fish. A sludge remover was developed in Bangladesh Agricultural Research Institute (BARI) which is capable of removing sludge up to 40–50 mm from the pond bottom. The main components of sludge remover are a float, axial flow pump (102 mm diameter), 7.50 kW diesel engine, sludge sucker, crane, propeller, rudder, etc. The discharge of the sludge pump was 14.11 L/s. The effective field capacity and field efficiency were 0.078 ha/h and 77.23% respectively at the forward speed of 12.5 ± 1.55 m/min. The water and sludge ratio was 3.6:1.0 (weight basis). A field trial was carried out to determine the effect of sludge removal on water quality and growth of fishes in intensive cultured ponds. Sludge was removed at three months interval from three pangus-tilapia-carp polyculture ponds. Three ponds of same size and fish stocking were kept as control. Water quality parameters like DO, pH, transparency and, unionized ammonia significantly (p ≤ 0.05) improved in the sludge removed ponds compare to control ponds. Sludge removed ponds demonstrated better FCR (1.64) and SGR (0.80% per day) compare to FCR (1.90) and SGR (0.71% per day) of control ponds. Fish survival, net yield, net return and BCR (5.40) of sludge removed ponds were higher than those of control ponds. This sludge remover may be recommended for cleaning sludge from intensive cultured fish ponds.
Akhand Akhtar Hossain
Published: 1 August 2016
Journal of Asian Economics, Volume 45, pp 56-73; doi:10.1016/j.asieco.2016.06.004

The publisher has not yet granted permission to display this abstract.
Ripon Roy, Mokhlesur Rahman
Published: 1 January 2014
by RePEc
Abstract:
Workers’ remittance inflows have been rising significantly over the past decade for Bangladesh. They have become one of the most stable sources of foreign exchange earnings and emerged as a crucial issue for monetary and fiscal policy. In 2012, remittances contributed to 12.3% of GDP of Bangladesh while the contribution was 6.4% in 2003. Besides lowering poverty and stimulating economic growth through different microeconomic and macroeconomics channels, remittances like other massive capital inflows can induce inflation and appreciate the real exchange rate and thereby hurt the competitiveness of the tradable sector along the lines of the Dutch Disease phenomenon. In this paper, we have empirically tested whether growing remittances cause an inflation (Model 1) as well as food inflation (Model 2) in Bangladesh using monthly data over the time period July 2003- July 2013 (post - floating exchange rate scenario). We have considered two models as the pattern of expenditure varies by consumption categories suggesting that the effect of remittances may also vary across them. Monthly data is used to better represent the changes in inflation as it is well known that inflation changes occur very quickly in response to shocks. The reason for specifically concentrating on the post-floating exchange rate scenario comes from the fact that the impact of remittances on a economy depends on the exchange rate regimes and studies not controlling for regimes may be biased as suggested by Ball, Lopez & Reyes (2013). Johansen (1988) and Johansen & Juselius (1990) cointegration technique is used to determine the long run relationship between remittances and inflation. Then, a Vector Error Correction Model (VECM) approach is applied for estimating the direction, extent and significance of the relationship. The results of both the models show that remittance inflows cause an inflationary pressure in Bangladesh while the responsiveness of food inflation is almost two and half times higher
Abdullahil Mamun, Abdul Hamid Chowdhury, Shahanara Basher
Mediterranean Journal of Social Sciences, Volume 4; doi:10.5901/mjss.2013.v4n6p205

Abstract:
The paper empirically examines the impact of depreciation on domestic output growth and price level of Bangladesh. Exchange rate along with some other traditional factors like investment spending, bank credit, narrow and broad money and labor force have been taken into account to evaluate the influence of exchange rate fluctuation on economic growth and price level of Bangladesh. The macroeconomic time series variables are made stationary to employ regression techniques. The study finds that depreciation has an expansionary effect on output level and price level and the overall result is consistent with the view that depreciation leads to inflation fostering the output growth.Depreciation, which is essential to regain export competitiveness, should be handled pragmatically to uproot its adverse implication on long term economic growth of Bangladesh that might occur due to import contraction.DOI: 10.5901/mjss.2013.v4n6p205
Nobinkhor Kundu, Asma Banu, Farhana Sehreen
Published: 1 January 2012
by RePEc
Abstract:
This paper examines the macroeconomic determinants of workers’ remittances in Bangladesh. Multiple regressions find that the macroeconomic variables such as real gross domestic product (RGDP), workers’ remittances (WREMI), foreign direct investment (FDI), official development assistant (ODA), inflation rates (INFRAT) of Bangladesh have significant impact on RGDP. The study focused on the importance of WREMI inflow and its implication for economic growth in Bangladesh. Using time series data over a 35 year period, by using estimated multiple regressions approach, we analyze the impact of WREMI inflow on economic growth in Bangladesh for the period 1976-2010. WREMI income increased from low $24 million in 1976 to over $11.1 billion in 2010 (WDI, 2011). WREMI is one of the major sources of foreign exchange earnings and it exceeded FDI and ODA inflows to the developing countries (World Bank, 2006) and we found that growth in WREMI does lead to economic growth in Bangladesh. The paper also discusses economic growth issues arising from the results of the analysis in relation to WREMI in association with macroeconomic determinants. This determinant is statistically significant, supporting a mediating effect of investment between WREMI and economic growth and shows that WREMI effect on growth of RGDP positively and significant impact on foreign reserves in both the short run and long run.
Selim Raihan
Published: 1 January 2012
by RePEc
Abstract:
There is no denying the fact that the recent global economic crisis has profound implications for the developing countries like Bangladesh. This paper has explored the impacts of global economic crisis on the economy of Bangladesh in a general equilibrium framework. The CGE model for Bangladesh economy is developed with a Social Accounting Matrix for the year 2007 as the database. Analysis of the trend and pattern of the global economic crisis suggests that global economic crisis led to some negative impacts on the Bangladesh economy through two major channels: slumps in exports and remittances growths. Three simulations have been conducted considering export and remittance shocks and their short term and long term effects are explored under different factor market closures. The results of the simulations suggest that during the global economic crisis the growth in total exports was much lower than those during pre-crisis periods and the export growth was mainly driven by the growth in non-RMG sectors. Under the export simulation, the woven and knit RMG sectors would experience contraction and there would be some expansions of the non-RMG export oriented sectors. Because of the reduced rates of growth in overall exports as well as much slower growth in knit and woven RMG sectors, there would be some negative impacts on the economy in terms of falls in consumption, exports, imports and households’ consumption and welfare. The poorer households would suffer more as a result of negative export shock during the global economic crisis. Furthermore, the reduced rate of growth in remittances during the global economic crisis would contribute to the fall in household income and real consumption. Demand for goods would decline and, as a result, domestic demand and import would decrease. Due to the fact that reduction in inflow of remittance would contribute to depreciation of the real exchange rate, there would be a positive impact on the growth of exports. All household cat
, Gazi Salah Uddin
International Journal of Business and Management, Volume 4; doi:10.5539/ijbm.v4n3p43

Abstract:
Stock exchange and interest rate are two crucial factors of economic growth of a country. The impacts of interest rate on stock exchange provide important implications for monitory policy, risk management practices, financial securities valuation and government policy towards financial markets. This study seeks evidence supporting the existence of share market efficiency based on the monthly data from January 1988 to March 2003 and also shows empirical relationship between stock index and interest rate for fifteen developed and developing countries- Australia, Bangladesh, Canada, Chile, Colombia, Germany, Italy, Jamaica, Japan, Malaysia, Mexico, Philippine, S. Africa, Spain, and Venezuela. Stationarity of market return is tested and found none of this stock market follows random walk model, means not efficient in weak form. To investigate the reasons of market inefficiency, relationship between share price and interest rate, and changes of share price and changes of interest rate were determined through both time series and panel regressions. For all of the countries it is found that interest rate has significant negative relationship with share price and for six countries it is found that changes of interest rate has significant negative relationship with changes of share price. So, if the interest rate is considerably controlled for these countries, it will be the great benefit of these countries’ stock exchange through demand pull way of more investors in share market, and supply push way of more extensional investment of companies.
Shoaib Ahmed
Published: 1 January 2009
by RePEc
Abstract:
This is an empirically study to investigate the exchange rate volatility and it impacts on bilateral exports growth: evidence from Bangladesh. The countries are considered to determine based on the bilateral relationship between Bangladesh and the other countries under a range of regional economic blocks such as North America, Western Europe, Eastern Europe, SAARC, ASEAN, and Asia-Pacific regions. To establish the empirical relationship between exchange rate volatility and impact on exports growth, cointegration and error correction techniques are used by considering the data from 2003 to 2008. From the investigation, the result shows that the exchange rate volatility has a negative and major effect both in short run and long run with important trading partners, which are Western European and North American countries. Similar pattern was also experienced in case of few countries such as Singapore, Japan, Malaysia and China where the volume of trade with Bangladesh is comparatively consistent and less volatile. The relationship between exchange rate volatility and growth of export for India and Pakistan is observed only in long run perspective. However, there is no empirical relationship being observed of exchange rate volatility and it impacts on export growth between Bangladesh and Iran and other s Gulf countries.
Studies in Business and Economics, Volume 12, pp 5-23; doi:10.29117/sbe.2006.0012

Abstract:
Co-integration and Error Correction Model (ECM) are employed to study the behavior of Current Account Deficit (CAD) of Bangladesh and its determinants. The determinants of CAD include budget surplus, domestic saving, domestic income growth, foreign income growth, foreign interest rate, terms of trade, export and real exchange rate. A long-run equilibrium (co-integration) relationship is found between CAD and its determinants, although some variables are non-stationary. Out of eight independent variables only three of them namely, terms of trade, export and foreign interest rate, are found to have significant impact on CAD both in the long and short run. ECM formulation of the CAD model shows that more than 72% discrepancy between actual and long-run value of CAD is corrected in each year. The important implication of the study is that domestic economic policy has little to do with correcting CAD as all significant factors are related to the external economic conditions. Co-integration and Error Correction Model (ECM) are employed to study the behavior of Current Account Deficit (CAD) of Bangladesh and its determinants. The determinants of CAD include budget surplus, domestic saving, domestic income growth, foreign income growth, foreign interest rate, terms of trade, export and real exchange rate. A long-run equilibrium (co-integration) relationship is found between CAD and its determinants, although some variables are non-stationary. Out of eight independent variables only three of them namely, terms of trade, export and foreign interest rate, are found to have significant impact on CAD both in the long and short run. ECM formulation of the CAD model shows that more than 72% discrepancy between actual and long-run value of CAD is corrected in each year. The important implication of the study is that domestic economic policy has little to do with correcting CAD as all significant factors are related to the external economic conditions.
World Bank
Published: unknown date
by RePEc
Abstract:
South Asia remains the fastest growing region in the world. With a strong performance in the eastern part of the region – in particular in Bhutan, Bangladesh and India – the region defied disappointing world growth in 2016. Inflation slowed down in the second half of 2016, mainly due to lower food prices, but appears to be turning up again. Despite recent real exchange rate appreciation, current account balances are mostly in order throughout the region. After a sharp decline triggered by lower oil prices, remittance inflows are stabilizing in most countries and international reserves are mostly at comfortable levels. Progress on fiscal consolidation has been more gradual and public debt levels remain high. South Asia’s performance will maintain momentum, with the gap between its growth rate and that of East Asia slightly widening over time. Regional growth is expected to surpass 7 percent from 2018 onwards. Robust domestic demand, an uptick in exports, and steady FDI inflows underlie this positive outlook. But with financial sector risks remaining, creating financing opportunities for private investment remains a challenge. Pressures against international trade are mounting. The negotiation of mega-regional trade agreements stalled, the number of protectionist measures has increased, and existing agreements may be reconsidered. South Asia was already less integrated in global merchandise trade than other regions. In light of current pressures, a legitimate question is whether it should focus on exports as a driver of economic growth and job creation. However, the prospects for the region are better than it seems. The stalled mega-regional trade agreements, which did not include any South Asian country, were expected to reduce South Asia’s competitiveness. Simulations on the impact of hypothetical new trade barriers applied across the board suggest that the harm for the region would be limited. And in a scenario where hypothetical new trade barriers would be applied
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