Title : Are the Bangladesh Exports to and Imports from India Co-integrated?

Authors : Md. Sharif Hossain

Abstract : Among the most active trading partners, the trade relation of Bangladesh with India has become increasingly important and grown exceeding fast over the last few years. Among different countries, India is the largest exporter to Bangladesh. However, Bangladesh statistics suggests that trade flows Bangladesh and India are extremely imbalanced. Thus to know the trade deficit pattern between Bangladesh and India in this paper a principle attempt has been made an empirical investigation on the time series behavior of the trade deficit by using modern Econometric techniques. Analysis of time series data on exports and imports of Bangladesh with India using unit root and co-integration tests reveal that the hypothesis of stationarity is uniformly rejected and the imports of Bangladesh from and exports to India do not share the same stochastic trend. The findings of this paper put a step better understanding of this issue between Bangladesh and India.

Journal : The Journal of Business Studies, Faculty of Business Studies, University of Dhaka, Bangladesh, Vol. XXVI, No. 1. 125-141. Volume : XXVI Year : 2005 Issue : 1
Pages : 125-141 City : Edition : Editors :
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