Exchange rate and Export of Bangladesh: Does Marshall-Lerner condition holds?

ABC Research Alert

View Publication Info
 
 
Field Value
 
Title Exchange rate and Export of Bangladesh: Does Marshall-Lerner condition holds?
 
Creator Roy, Shovon
Jonaed
 
Subject Exchange rate
export earnings
cointegration
VECM
Granger Causality
 
Description Export is expected to have a favorable impact on GDP growth, and the exchange rate is expected to have a major impact on export and thus export earnings. The relationship between exchange rate and export is a hotly debated topic in macroeconomics, and the goal of this research is to see if the Marshall-Lerner condition holds incase of Bangladesh that is if devaluation of domestic currency increase export earnings. Explanatory variables of the model in the study are the exchange rate, foreign income (WGDP), and domestic income (DGDP). Cointegration approaches; Error Correction model, Granger Causality test are used in this study to estimate the long and short-run impacts. With time series data from 1973Q3 to 2018Q2, we used the Error Correction Model and the Granger Causality Test. The findings of VECM support short-run exchange rate and export adjustments. The bidirectional causality between exchange rate and export is established using the Granger causality test.
 
Publisher Asian Business Consortium
 
Date 2022-01-07
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier https://abc.us.org/ojs/index.php/abcra/article/view/588
10.18034/abcra.v10i1.588
 
Source ABC Research Alert; Vol. 10 No. 1 (2022): January-April Issue; 09-16
2413-5224
10.18034/abcra.v10i1
 
Language eng
 
Relation https://abc.us.org/ojs/index.php/abcra/article/view/588/1095
 
Rights Copyright (c) 2022 Shovon Roy, Jonaed
http://creativecommons.org/licenses/by-nc/4.0
 

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