The determinants of Bangladesh's trade: evidence from the generalized gravity model (ECON 2005-3)

Rahman, Mohammad Mafizur (2005) The determinants of Bangladesh's trade: evidence from the generalized gravity model (ECON 2005-3). Working Paper. University of Sydney, School of Economics and Political Science , Sydney, Australia. [Report]


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The application of the generalized gravity model in analyzing the Bangladesh’s trade reveals that Bangladesh’s trade is positively determined by the size of the economies, per capita GNP differential of the countries involved and openness of the trading countries. Bangladesh’s exports are positively determined by the exchange rate, partner countries' total import demand and openness of the Bangladesh economy. Bangladesh’s imports are determined by inflation rates, per capita income differentials, openness of the countries involved in trade and the border between India and Bangladesh.
Multilateral resistance factors and transportation costs affect Banglades's trade positively and negatively respectively.

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Item Type: Report (Working Paper)
Item Status: Live Archive
Additional Information: Published as a Working Paper ECON 2005-3 in the School of Economics and Political Science, Faculty of Economics and Business, University of Sydney, Australia.
Faculty / Department / School: Historic - Faculty of Business - No Department
Date Deposited: 27 Mar 2008 08:21
Last Modified: 02 Jul 2013 22:50
Uncontrolled Keywords: Gravity Model, panel data, Fixed Effect Model, Bangladesh, trade
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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