Export-Led Growth Hypothesis in Developing Countries: Econometric Evidence from Bangladesh

Authors : Harun BAL, Abdulla Hil MAMUN, Shahanara BASHER, Mohammad Rahim UDDIN, Masrurul MOWLA

Pages : 454-465

Doi:10.25287/ohuiibf.507759

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Publication Date : 2019-10-18

Article Type : Research Paper

Abstract :The meticulous growth of both export and output of Bangladesh following the inception of trade liberalisation and export promotion in the late 1970s through 2010s gravely underscore the export-led growth insert ignore into journalissuearticles values(ELG); hypothesis for the economy. The present study examines whether the economic growth of Bangladesh is lead by exports employing the ARDL Bounds testing approach with particular attention to its long-run dynamics for the period from 1974 to 2015. Despite having a positive impact of trade and export on economic growth irrespective to the short run as well as in the long term , the absence of unidirectional positive causal relation from exports to economic growth, in the long run , rejects the validity of ELG hypothesis for Bangladesh. Import and gross capital formation are found to have an impact on economic growth compatible with theoretical expectation.
Keywords : Export led Growth, Bounds Test