Title : Trade Bilateral Deficit of Bangladesh with Other Selected SAARC Countries; An Empirical Investigation on the Temporal Behavior

Authors : Md. Sharif Hossain

Abstract : Among the most active trading partners, the trade relation of Bangladesh with other selected SAARC countries specially with India and Pakistan has become increasingly important and grown exceeding fast over the last few years. Among different SAARC countries, India is the largest exporter to Bangladesh. However, Bangladesh statistics suggests that trade flows in different SAARC countries are imbalanced, specially between Bangladesh and India. Analysis of time series data on exports and imports of Bangladesh with selected SAARC countries 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 and Pakistan do not share the same stochastic trend. But exports to Sri-Lanka and imports from Sri-Lanka are co-integrated. The findings of this paper put a step better understanding of the issue between Bangladesh and other SAARC countries.

Journal : The Journal of Quantitative Economics, India, Vol. 5, No. 1. 112-139 Volume : 5 Year : 2007 Issue : 1
Pages : 112-139 City : Edition : Editors :
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