The factors affecting Bangladesh's exports: evidence from the gravity model analysis

Rahman, Mohammad Mafizur (2010) The factors affecting Bangladesh's exports: evidence from the gravity model analysis. Journal of Developing Areas, 44 (1). pp. 229-244. ISSN 0022-037X


This paper attempts to identify the factors that affect Bangladesh's exports. The panel data estimation technique and a generalized gravity model have been used to analyze Bangladesh's export trade pattern. A theoretical justification for using the gravity model in the analysis of bilateral trade has been reaffirmed. The estimated results reveal that the main contributors to Bangladesh's exports are the exchange rate, partner countries' total import demand and the openness of the Bangladesh economy. All these factors affect the country's exports positively. Transportation costs have negative but insignificant effect on Bangladesh's exports. The country specific effects show that neighboring countries' influence on the Bangladesh's exports is more than the influence of other distant countries. Therefore, Bangladesh should reduce trade barriers, pursue competitive devaluation of its currency, improve product quality and increase product varieties.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright Tennessee State University College of Business.
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 16 Sep 2010 01:40
Last Modified: 03 Jul 2013 00:02
Uncontrolled Keywords: gravity model; panel data; Bangladesh; exports
Fields of Research : 14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
14 Economics > 1402 Applied Economics > 140212 Macroeconomics (incl. Monetary and Fiscal Theory)
14 Economics > 1401 Economic Theory > 140102 Macroeconomic Theory
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9103 International Trade > 910399 International Trade not elsewhere classified

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