A HISTORICAL PERSPECTIVE OF TRADE LIBERALISATION DYNAMICS IN BANGLADESH: IMPACTS OF NATURAL CALAMITY RISK, GROSS DOMESTIC PRODUCT, FOREIGN EXCHANGE RESERVE, RELATIVE PRICE AND TARIFF ON IMPORT DEMAND
Abstract
Purpose: After the trade liberation, Bangladesh has faced the crisis of trade imbalance. Therefore, trade liberation is considered as the driving force behind the crisis. To investigate this historical allegation, this study aims at analysing the factors that determined the post trade liberalisation aggregate import demand function of Bangladesh.
Design/Methodology/Approach: Based on quarterly data from trade liberalisation period to reaching the economic stability period, 1992Q1 - 2007Q4, an autoregressive distributed lag (ARDL) approach to cointegration and an error correction model (ECM) have been utilised to estimate the impacts of natural calamity, gross domestic product, foreign exchange reserve, relative price and tariff on aggregate import demand of Bangladesh.
Findings: Empirical results revealed that the natural calamity is identified to be nonresponsive to the nation's aggregate import demand both in the short and long run. This indicates that Bangladesh can meet the natural crisis related demand by herself without influencing its aggregate import demand. Results also revealed that the import volume of Bangladesh is cointegrated with relative import price, actual GDP and real foreign exchange reserve of the country. The import demand of the country can largely be described by its real GDP, while it is found inversely associated with relative price ratio in the long run. The long run association among import demand and tariff rate indicates that trade liberalisation has a significant positive impact on the country's aggregate import demand, as well as real foreign exchange reserve, as explained by the reduction in tariff rate.
Research Implication: Developing countries like Bangladesh and the relevant business stakeholders would have considerable implications of such empirical findings with their trade policies, particularly how they should respond to unpredictable scenarios caused by the factors such as natural calamity, foreign exchange reserve, tariff, etc.
Originality Value: The originality of the study lies in its uniqueness in using the historical data and factors that no studies have so far used in analysing the import demand function of Bangladesh.
Keywords: Natural calamity, import demand, foreign exchange reserve, gross domestic product, tariff, trade liberalisation, Bangladesh.
Cite as: Shikha, H. A., Alam, M. M., Murad, M. W., Said, J., & Ahmed, Z. U. (2023). A historical perspective of trade liberalisation dynamics in Bangladesh: impacts of natural calamity risk, gross domestic product, foreign exchange reserve, relative price and tariff on import demand. Journal of Nusantara Studies, 8(TI), 177-208. http://dx.doi.org/10.24200/jonus.vol8issTIpp177-208
References
Ahmed, N. (2001). Trade liberalization in Bangladesh: An investigation into trends. University Press Limited.
Alam, M., Uddin, G., & Taufique, K. (2009). Import inflows of Bangladesh: The gravity model approach. International Journal of Economics and Finance, 1(1), 131-139.
Alias, M. H., Tang, T. C., & Othman, J. (2001). Aggregate import demand and expenditure components in five ASEAN countries: An empirical study. Jurnal Ekonomi Malaysia, 35(2001), 37-60.
Ang, J. B. (2009). Financial development and the FDI-growth nexus: The Malaysian experience. Applied Economics, 41(13), 1595-1601.
Ang, J. B., & McKibbin, W. J. (2005). Financial liberalization, financial sector development and growth: Evidence from Malaysia. (Centre for Applied Macroeconomic Analysis Working Paper 5). Australian National University.
Arize, A. C., & Malindretos, J. (2012). Foreign exchange reserves in Asia and its impact on import demand. International Journal of Economics and Finance, 4(3), 21-32.
Arize, A. C., & Osang, T. (2007). Foreign exchange reserves and import demand: Evidence from Latin America. World Economy, 30(9), 1477-1489.
Arize, A. C., Malindretos, J., & Grivoyannis, E. C. (2004). Foreign exchange reserves and import demand in a developing economy: The case of Pakistan. International Economic Journal, 18(2), 259-274.
Aydin, M. F., Ciplak, U., & Yucel E. M. (2004). Export supply and import demand models for the Turkish economy. (Research Development Working Paper 04/09). The Central Bank of the Republic of Turkey.
Aziz, M. N. (2013). Modelling import demand function for a developing country: An empirical approach. Asian-African Journal of Economics and Econometrics, 13(1), 1-15.
Babatunde, M. A., & Egwaikhide, F. O. (2010). Explaining Nigeria's import demand behaviour: A bound testing approach. International Journal of Development Issues, 9(2), 167-187.
Bhuyan, A. R., & Rashid, M. A. (1993). Trade regimes and industrial growth: A case study of Bangladesh. Bureau of Economic Research, University of Dhaka.
Brandt, L., Van Biesebroeck, J., Wang, L., & Zhang, Y. (2017). WTO accession and performance of Chinese manufacturing firms. American Economic Review, 107(9), 2784-2820.
Carneiro, F. G., & Arbache, J. S. (2003). The impacts of trade on the Brazilian labor market: A CGE model approach. World Development, 31(9), 1581-1595.
Carone, G. (1996). Modeling the US demand for imports through cointegration and error correction. Journal of Policy Modeling, 18(1), 1-48.
Chimobi, O. P., & Ogbonna, B. C. (2008). Estimating aggregate import-demand function in Nigeria: A co-integration approach. Journal of Research in National Development, 6(1), 234-256.
D’Souza, A., & Jolliffe, D. (2010). Rising food prices and coping strategies: Household-level evidence from Afghanistan. (World Bank Policy Research Working Paper 5466). The World Bank.
De Mel, S., McKenzie, D., & Woodruff, C. (2012). Enterprise recovery following natural disasters. The Economic Journal, 122(559), 64-91.
Dutta, D., & Ahmed, N. (2004). An aggregate import demand function for India: A cointegration analysis. Applied Economics Letters, 11(10), 607-613.
Dutta, D., & Ahmed, N. (1999). An aggregate import demand function for Bangladesh: A cointegration approach. Applied Economics, 31(4), 465-472.
Emran, M. S., & Shilpi, F. (2010). Estimating an import demand function in developing countries: A structural econometric approach with applications to India and Sri Lanka. Review of International Economics, 18(2), 307-319.
Emran, M. S., & Shilpi, F. (2001). Foreign Trade regimes and import demand function: Evidence from Sri Lanka. SSRN.
Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica, 55(2), 251-276.
Ernst, C. (2005). Trade liberalization, export orientation and employment in Argentina, Brazil and Mexico. ILO, Employment Analysis Unit.
FAO. (2011). The state of food insecurity in the World - How does international price volatility affect domestic economies and food security? Food and Agriculture Organization of the United Nations.
Fatukasi, B., & Awomuse, B. O. (2011). Determinants of import in Nigeria: Application of error correction model. Centrepoint Journal, Humanities Edition, 14(1), 52-72.
Fosu, O. E., & Magnus, F. J. (2006). Bounding testing approach to cointegration: An examination of foreign direct investment trade and growth relationships. American Journal of Applied Sciences, 3(11), 2079-2085.
Fu, X., & Balasubramanyam, V. N. (2005). Exports, foreign direct investment and employment: The case of China. World Economy, 28(4), 607-625.
Gassebner, M., Keck, A., & Teh, R. (2006). The Impact of disasters on international trade. (Staff Working Paper ERSD-2006-04). World Trade Organization Economic Research and Statistics Division.
Gassebner, M., Keck, A., & Teh, R. (2010). Shaken, not stirred: The impact of disasters on international trade. Review of International Economics, 18(2), 351-368.
Ghani, E., & Jayarajah, C. (1995). Trade reform, efficiency and growth. (Policy Research Working Paper 1438). World Bank.
Gonzalo, J. (1994). Five alternative methods of estimating long-run equilibrium relationships. Journal of Econometrics, 60(1-2), 203-233.
Granger, C. W., & Newbold, P. (1974). Spurious regressions in econometrics. Journal of Econometrics, 2(2), 111-120.
Greenaway, D., Morgan, W., & Wright, P. (1998). Trade reform, adjustment and growth: What does the evidence tell us? The Economic Journal, 108(450), 1547-1561.
Hoque, M. M., & Yusop, Z. (2010). Impacts of trade liberalisation on aggregate import in Bangladesh: An ARDL Bounds test approach. Journal of Asian Economics, 21(1), 37-52.
Hoque, M. M., & Yusop, Z. (2012). Impacts of trade liberalization on export performance in Bangladesh: An empirical investigation. South Asia Economic Journal, 13(2), 207-239.
Hossain, A. A. (2013). Trade liberalization and import-demand behavior in Bangladesh, 1974-2008. The Journal of Developing Areas, 47(2), 387-416.
Hussain, M. N. (2004). Estimation of import demand functions for Bangladesh Economy. Economic Affairs, 49(4), 225-233.
Hye, Q. M. A., & Mashkoor, M. (2010). Import demand function for Bangladesh: A rolling window analysis. African Journal of Business Management, 4(10), 2150-2156.
Islam, A. M., & Hassan, M. K. (2004). An econometric estimation of the aggregate import demand function for Bangladesh: Some further results. Applied Economics Letters, 11(9), 575-580.
Johnson, H. (1958). International trade and economic growth: Studies in pure theory. Allen and Unwin.
Ju, J., Wu, Y., & Zeng, L. (2010). The impact of trade liberalization on the trade balance in developing countries. IMF Staff Papers, 57(2), 427-449.
Kabir, R. (1988). Estimating import and export demand function: The case of Bangladesh. The Bangladesh Development Studies, 16(4), 115-127.
Khan, M. A., Qayyum, A., Sheikh, S. A., & Siddique, O. (2005). Financial development and economic growth: The case of Pakistan. The Pakistan Development Review, 44(4), 819-837.
Liu, Q., Qiu, L. D., & Zhan, C. (2019). Trade liberalization and domestic vertical integration: Evidence from China. Journal of International Economics, 121(1), 103250.
Lopez, P. P. (2005). The impact of trade liberalization on exports, imports, the balance of payments and growth: The case of Mexico. Journal of Post Keynesian Economics, 27(4), 595-619.
Mah, J. S. (2000). An empirical examination of the disaggregated import demand of Korea – The case of information technology products. Journal of Asian Economics, 11(2), 237-244.
Mah, J. S. (1999). Import demand, liberalization, and economic development. Journal of Policy Modeling, 21(4), 497-503.
Mehta, R., & Parikh, A. (2005). Impact of trade liberalization on import demands in India: A panel data analysis for commodity groups. Applied Economics, 37(16), 1851-1863.
Modeste, N. C. (2011). An empirical analysis of the demand for imports in three CARICOM member countries: An application of the bounds test for cointegration. The Review of Black Political Economy, 38(1), 53-62.
Mugableh, M. I. (2017). Estimating elasticity function of Jordanian aggregate import demand. Applied Economics and Finance, 4(2), 33-37.
Murray, T., & Ginman, P. J. (1976). An empirical examination of the traditional aggregate import demand model. The Review of Economics and Statistics, 58(1), 75-80.
Narayan, S., & Narayan, P. K. (2005). An empirical analysis of Fiji's import demand function. Journal of Economic Studies, 32(2) 158 – 168.
Narayan, S., & Narayan, P. K. (2010). Estimating import and export demand elasticities for Mauritius and South Africa. Australian Economic Papers, 49(3), 241-252.
Nell, K. S. (2013). An alternative explanation of India’s growth transition: A demand-side hypothesis. Cambridge Journal of Economics, 37(1), 113-141.
Nguyen, D. T., & Bhuiyan, A. R. (1977). Elasticities of export and import demand in some South Asian countries: Some estimates. The Bangladesh Development Studies, 5(2), 133-152.
Nwogwugwu, U. C., Maduka, A. C., & Madichie, C. V. (2015). Price and income elasticities of import demand in Nigeria: Evidence from the bound testing procedure. International Journal of Development and Economic Sustainability, 3(4), 91-103.
Oh, C. H., & Reuveny, R. (2010). Climatic natural disasters, political risk, and international trade. Global Environmental Change-human and Policy Dimensions, 20(1), 243-254.
Omoke, P. C. (2010). Error correction, co-integration and import demand function for Nigeria. International Journal of Development and Management Review, 5(1), 20-31.
Omotor, D. (2010). An aggregate import demand function for Nigeria. Economic research-Ekonomska istraživanja, 23(1), 1-13.
Ozturk, I., & Acaravci, A. (2009). An aggregate import demand function: An empirical investigation by panel data for Latin American and Caribbean countries. IUP Journal of Applied Economics, 8(5), 65-72.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
Phillips, P. C. (1987). Time series regression with a unit root. Econometrica: Journal of the Econometric Society, 55(2), 277-301.
Rama, M. (1994). The labour market and trade reform in manufacturing. In M. B. Connolly & J. de Melo (Eds.), Effects of protectionism on a small country: The case of Uruguay (pp. 108-123). World Bank.
Reinhart, C. M. (1995). Devaluation, relative prices, and international trade: Evidence from developing countries. IMF Staff Papers, 42(2), 290-312.
Robles, M., Torero, M., & Cuesta, J. (2010). Understanding the impact of high food prices in Latin America. Economia, 10(2), 117-164.
Santos‐Paulino, A., & Thirlwall, A. P. (2004). The impact of trade liberalisation on exports, imports and the balance of payments of developing countries. The Economic Journal, 114(493), 50-72.
Santos-Paulino, A. U. (2002). The effects of trade liberalization on imports in selected developing countries. World Development, 30(6), 959-974.
Senhadji, A. (1998). Time-series estimation of structural import demand equations: A cross-country analysis. Staff Papers, 45(2), 236-268.
Shilpi, F. J. (1990). Estimating income and price elasticities of imports and exports of Bangladesh. Bangladesh Institute of Development Studies.
Siddique, A. (1997). Estimation of an import demand function for Indonesia: 1971-93. Modelling and Simulation Society of Australia.
Stock, J. H., & Watson, M. W. (1988). Testing for common trends. Journal of the American Statistical Association, 83(404), 1097-1107.
Subervie, J. (2008). The variable response of agricultural supply to world price instability in developing countries. Journal of Agricultural Economics, 59(1), 72-92.
Sultan, Z. A. (2011). Foreign exchange reserves and India's import demand: A cointegration and vector error correction analysis. International Journal of Business and Management, 6(7), 69-76.
Uddin, G., Khan, S., & Alam, M. (2010). An empirical study on export, import and economic growth in Bhutan. Indian Development Review, 8(1), 95-104.
Yu, M. (2015). Processing trade, tariff reductions and firm productivity: Evidence from Chinese firms. The Economic Journal, 125(585), 943-988.
Alam, M., Uddin, G., & Taufique, K. (2009). Import inflows of Bangladesh: The gravity model approach. International Journal of Economics and Finance, 1(1), 131-139.
Alias, M. H., Tang, T. C., & Othman, J. (2001). Aggregate import demand and expenditure components in five ASEAN countries: An empirical study. Jurnal Ekonomi Malaysia, 35(2001), 37-60.
Ang, J. B. (2009). Financial development and the FDI-growth nexus: The Malaysian experience. Applied Economics, 41(13), 1595-1601.
Ang, J. B., & McKibbin, W. J. (2005). Financial liberalization, financial sector development and growth: Evidence from Malaysia. (Centre for Applied Macroeconomic Analysis Working Paper 5). Australian National University.
Arize, A. C., & Malindretos, J. (2012). Foreign exchange reserves in Asia and its impact on import demand. International Journal of Economics and Finance, 4(3), 21-32.
Arize, A. C., & Osang, T. (2007). Foreign exchange reserves and import demand: Evidence from Latin America. World Economy, 30(9), 1477-1489.
Arize, A. C., Malindretos, J., & Grivoyannis, E. C. (2004). Foreign exchange reserves and import demand in a developing economy: The case of Pakistan. International Economic Journal, 18(2), 259-274.
Aydin, M. F., Ciplak, U., & Yucel E. M. (2004). Export supply and import demand models for the Turkish economy. (Research Development Working Paper 04/09). The Central Bank of the Republic of Turkey.
Aziz, M. N. (2013). Modelling import demand function for a developing country: An empirical approach. Asian-African Journal of Economics and Econometrics, 13(1), 1-15.
Babatunde, M. A., & Egwaikhide, F. O. (2010). Explaining Nigeria's import demand behaviour: A bound testing approach. International Journal of Development Issues, 9(2), 167-187.
Bhuyan, A. R., & Rashid, M. A. (1993). Trade regimes and industrial growth: A case study of Bangladesh. Bureau of Economic Research, University of Dhaka.
Brandt, L., Van Biesebroeck, J., Wang, L., & Zhang, Y. (2017). WTO accession and performance of Chinese manufacturing firms. American Economic Review, 107(9), 2784-2820.
Carneiro, F. G., & Arbache, J. S. (2003). The impacts of trade on the Brazilian labor market: A CGE model approach. World Development, 31(9), 1581-1595.
Carone, G. (1996). Modeling the US demand for imports through cointegration and error correction. Journal of Policy Modeling, 18(1), 1-48.
Chimobi, O. P., & Ogbonna, B. C. (2008). Estimating aggregate import-demand function in Nigeria: A co-integration approach. Journal of Research in National Development, 6(1), 234-256.
D’Souza, A., & Jolliffe, D. (2010). Rising food prices and coping strategies: Household-level evidence from Afghanistan. (World Bank Policy Research Working Paper 5466). The World Bank.
De Mel, S., McKenzie, D., & Woodruff, C. (2012). Enterprise recovery following natural disasters. The Economic Journal, 122(559), 64-91.
Dutta, D., & Ahmed, N. (2004). An aggregate import demand function for India: A cointegration analysis. Applied Economics Letters, 11(10), 607-613.
Dutta, D., & Ahmed, N. (1999). An aggregate import demand function for Bangladesh: A cointegration approach. Applied Economics, 31(4), 465-472.
Emran, M. S., & Shilpi, F. (2010). Estimating an import demand function in developing countries: A structural econometric approach with applications to India and Sri Lanka. Review of International Economics, 18(2), 307-319.
Emran, M. S., & Shilpi, F. (2001). Foreign Trade regimes and import demand function: Evidence from Sri Lanka. SSRN.
Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica, 55(2), 251-276.
Ernst, C. (2005). Trade liberalization, export orientation and employment in Argentina, Brazil and Mexico. ILO, Employment Analysis Unit.
FAO. (2011). The state of food insecurity in the World - How does international price volatility affect domestic economies and food security? Food and Agriculture Organization of the United Nations.
Fatukasi, B., & Awomuse, B. O. (2011). Determinants of import in Nigeria: Application of error correction model. Centrepoint Journal, Humanities Edition, 14(1), 52-72.
Fosu, O. E., & Magnus, F. J. (2006). Bounding testing approach to cointegration: An examination of foreign direct investment trade and growth relationships. American Journal of Applied Sciences, 3(11), 2079-2085.
Fu, X., & Balasubramanyam, V. N. (2005). Exports, foreign direct investment and employment: The case of China. World Economy, 28(4), 607-625.
Gassebner, M., Keck, A., & Teh, R. (2006). The Impact of disasters on international trade. (Staff Working Paper ERSD-2006-04). World Trade Organization Economic Research and Statistics Division.
Gassebner, M., Keck, A., & Teh, R. (2010). Shaken, not stirred: The impact of disasters on international trade. Review of International Economics, 18(2), 351-368.
Ghani, E., & Jayarajah, C. (1995). Trade reform, efficiency and growth. (Policy Research Working Paper 1438). World Bank.
Gonzalo, J. (1994). Five alternative methods of estimating long-run equilibrium relationships. Journal of Econometrics, 60(1-2), 203-233.
Granger, C. W., & Newbold, P. (1974). Spurious regressions in econometrics. Journal of Econometrics, 2(2), 111-120.
Greenaway, D., Morgan, W., & Wright, P. (1998). Trade reform, adjustment and growth: What does the evidence tell us? The Economic Journal, 108(450), 1547-1561.
Hoque, M. M., & Yusop, Z. (2010). Impacts of trade liberalisation on aggregate import in Bangladesh: An ARDL Bounds test approach. Journal of Asian Economics, 21(1), 37-52.
Hoque, M. M., & Yusop, Z. (2012). Impacts of trade liberalization on export performance in Bangladesh: An empirical investigation. South Asia Economic Journal, 13(2), 207-239.
Hossain, A. A. (2013). Trade liberalization and import-demand behavior in Bangladesh, 1974-2008. The Journal of Developing Areas, 47(2), 387-416.
Hussain, M. N. (2004). Estimation of import demand functions for Bangladesh Economy. Economic Affairs, 49(4), 225-233.
Hye, Q. M. A., & Mashkoor, M. (2010). Import demand function for Bangladesh: A rolling window analysis. African Journal of Business Management, 4(10), 2150-2156.
Islam, A. M., & Hassan, M. K. (2004). An econometric estimation of the aggregate import demand function for Bangladesh: Some further results. Applied Economics Letters, 11(9), 575-580.
Johnson, H. (1958). International trade and economic growth: Studies in pure theory. Allen and Unwin.
Ju, J., Wu, Y., & Zeng, L. (2010). The impact of trade liberalization on the trade balance in developing countries. IMF Staff Papers, 57(2), 427-449.
Kabir, R. (1988). Estimating import and export demand function: The case of Bangladesh. The Bangladesh Development Studies, 16(4), 115-127.
Khan, M. A., Qayyum, A., Sheikh, S. A., & Siddique, O. (2005). Financial development and economic growth: The case of Pakistan. The Pakistan Development Review, 44(4), 819-837.
Liu, Q., Qiu, L. D., & Zhan, C. (2019). Trade liberalization and domestic vertical integration: Evidence from China. Journal of International Economics, 121(1), 103250.
Lopez, P. P. (2005). The impact of trade liberalization on exports, imports, the balance of payments and growth: The case of Mexico. Journal of Post Keynesian Economics, 27(4), 595-619.
Mah, J. S. (2000). An empirical examination of the disaggregated import demand of Korea – The case of information technology products. Journal of Asian Economics, 11(2), 237-244.
Mah, J. S. (1999). Import demand, liberalization, and economic development. Journal of Policy Modeling, 21(4), 497-503.
Mehta, R., & Parikh, A. (2005). Impact of trade liberalization on import demands in India: A panel data analysis for commodity groups. Applied Economics, 37(16), 1851-1863.
Modeste, N. C. (2011). An empirical analysis of the demand for imports in three CARICOM member countries: An application of the bounds test for cointegration. The Review of Black Political Economy, 38(1), 53-62.
Mugableh, M. I. (2017). Estimating elasticity function of Jordanian aggregate import demand. Applied Economics and Finance, 4(2), 33-37.
Murray, T., & Ginman, P. J. (1976). An empirical examination of the traditional aggregate import demand model. The Review of Economics and Statistics, 58(1), 75-80.
Narayan, S., & Narayan, P. K. (2005). An empirical analysis of Fiji's import demand function. Journal of Economic Studies, 32(2) 158 – 168.
Narayan, S., & Narayan, P. K. (2010). Estimating import and export demand elasticities for Mauritius and South Africa. Australian Economic Papers, 49(3), 241-252.
Nell, K. S. (2013). An alternative explanation of India’s growth transition: A demand-side hypothesis. Cambridge Journal of Economics, 37(1), 113-141.
Nguyen, D. T., & Bhuiyan, A. R. (1977). Elasticities of export and import demand in some South Asian countries: Some estimates. The Bangladesh Development Studies, 5(2), 133-152.
Nwogwugwu, U. C., Maduka, A. C., & Madichie, C. V. (2015). Price and income elasticities of import demand in Nigeria: Evidence from the bound testing procedure. International Journal of Development and Economic Sustainability, 3(4), 91-103.
Oh, C. H., & Reuveny, R. (2010). Climatic natural disasters, political risk, and international trade. Global Environmental Change-human and Policy Dimensions, 20(1), 243-254.
Omoke, P. C. (2010). Error correction, co-integration and import demand function for Nigeria. International Journal of Development and Management Review, 5(1), 20-31.
Omotor, D. (2010). An aggregate import demand function for Nigeria. Economic research-Ekonomska istraživanja, 23(1), 1-13.
Ozturk, I., & Acaravci, A. (2009). An aggregate import demand function: An empirical investigation by panel data for Latin American and Caribbean countries. IUP Journal of Applied Economics, 8(5), 65-72.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
Phillips, P. C. (1987). Time series regression with a unit root. Econometrica: Journal of the Econometric Society, 55(2), 277-301.
Rama, M. (1994). The labour market and trade reform in manufacturing. In M. B. Connolly & J. de Melo (Eds.), Effects of protectionism on a small country: The case of Uruguay (pp. 108-123). World Bank.
Reinhart, C. M. (1995). Devaluation, relative prices, and international trade: Evidence from developing countries. IMF Staff Papers, 42(2), 290-312.
Robles, M., Torero, M., & Cuesta, J. (2010). Understanding the impact of high food prices in Latin America. Economia, 10(2), 117-164.
Santos‐Paulino, A., & Thirlwall, A. P. (2004). The impact of trade liberalisation on exports, imports and the balance of payments of developing countries. The Economic Journal, 114(493), 50-72.
Santos-Paulino, A. U. (2002). The effects of trade liberalization on imports in selected developing countries. World Development, 30(6), 959-974.
Senhadji, A. (1998). Time-series estimation of structural import demand equations: A cross-country analysis. Staff Papers, 45(2), 236-268.
Shilpi, F. J. (1990). Estimating income and price elasticities of imports and exports of Bangladesh. Bangladesh Institute of Development Studies.
Siddique, A. (1997). Estimation of an import demand function for Indonesia: 1971-93. Modelling and Simulation Society of Australia.
Stock, J. H., & Watson, M. W. (1988). Testing for common trends. Journal of the American Statistical Association, 83(404), 1097-1107.
Subervie, J. (2008). The variable response of agricultural supply to world price instability in developing countries. Journal of Agricultural Economics, 59(1), 72-92.
Sultan, Z. A. (2011). Foreign exchange reserves and India's import demand: A cointegration and vector error correction analysis. International Journal of Business and Management, 6(7), 69-76.
Uddin, G., Khan, S., & Alam, M. (2010). An empirical study on export, import and economic growth in Bhutan. Indian Development Review, 8(1), 95-104.
Yu, M. (2015). Processing trade, tariff reductions and firm productivity: Evidence from Chinese firms. The Economic Journal, 125(585), 943-988.
Published
2023-09-30
How to Cite
Shikha, H. A., Alam, M. M., Murad, M. W., Said, J., & Ahmed, Z. U. (2023). A HISTORICAL PERSPECTIVE OF TRADE LIBERALISATION DYNAMICS IN BANGLADESH: IMPACTS OF NATURAL CALAMITY RISK, GROSS DOMESTIC PRODUCT, FOREIGN EXCHANGE RESERVE, RELATIVE PRICE AND TARIFF ON IMPORT DEMAND. Journal of Nusantara Studies (JONUS), 8(3), 177-208. https://doi.org/10.24200/jonus.vol8iss3pp177-208
Section
Articles
