The causative factors of Bangladesh's exports: evidence from the Gravity Model Analysis

Rahman, Mohammad Mafizur (2007) The causative factors of Bangladesh's exports: evidence from the Gravity Model Analysis. In: New Zealand Association of Economists 48th Annual Conference, 27-29 June 2007, Christchurch, New Zealand.


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The paper firstly notes a theoretical justification for using the gravity model in the analysis of bilateral trade under either perfectly competitive or monopolistic market structure. It then applies a generalized gravity model to analyze Bangladesh’s export trade pattern using the panel data estimation technique. The estimated results reveal that the main contributors of the Bangladesh’s exports are the exchange rate, partner countries’ total import demand, openness of Bangladesh economy and multilateral resistance factors. All affects the country’s exports positively. Transportation costs affect Bangladesh’s exports negatively. The country specific effects show that neighbouring countries’ influence on Bangladesh’s exports is more than the influence of other distant countries.

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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Author retains copyright.
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 11 Oct 2007 01:14
Last Modified: 25 Aug 2014 03:20
Uncontrolled Keywords: Gravity Model, panel data, Fixed Effect Model, Bangladesh exports
Fields of Research : 14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis

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