Title : Pooled Mean Group Estimation of the Bilateral inpayments and Outpayments for Bangladesh vis-i-vis Major Trading Partners


Authors : Gour Gobinda Goswami, Kazi Sabbir Ahmed

Abstract : ln addressing the issue of short-run heterogeneity as well as long run homogeneity of the estimated coefficients in a panel framework, the pooled Mean Group (PMG) esamaturfPesaranet a/.' | 9?9/hasgainedpopularityin app/iedresearcnn economics andbusinessrecentt/ rh6 estimationmethodhasbeenusedsuccessfu//yin the context ofbi/atera/tradebalanceestimationforthe uSwith itsmqor tradingpaftners/Goswami and Junayed, 2006/' and in another contextthe bilateral expor\ and tmports mode/ hasbeen ercendedby modeling bilateralinpaymentsand outpaymeng separate/yfor Japanand is malor tradingpartners/Bahmani-oskooeeand Goswamr.2004/ by using AutoregressiveDisuibutedLag/,ARDL/ approachb cointryrattononapartner_by_partner basrs' Themalorlimitationsof thesekind ofbilateralmodelsis/owpower andresuping wrong sign and insignificance of the esdmated coefficients due to functiona/ mrsspecification,multicollineariQtas we//asomifted variab/ebiaswhrchca//for apane/ setupin the light of bilateralframework. Thepresentpaper fi/lsthisgap tn the extsting literature by estimatingboth the equailonsof bilateralinpaymentsand outpayments for Eang/adeshvis-d-visiB /5 ma1'or tradingpartnersfor theperiod | ?7303-200402 using the PMGestimation. Thepaper revealsthat the speedof adjustment measured by the short-run error coffection coefficienBislower in pMG estimatroncomparedto ARDLestimation. Thrsmight ratseanother important researchquestion that pane/ frameworkmayprovide beffer estimatesformaJorparametersof themode/in the/ong run at the cost of al/owing lower speed of aa1-ustmen\in the srlort run


Journal : The IUP Journal of Applied Economics Volume : 9 Year : 2010 Issue : 1
Pages : 27-39 City : Edition : Editors :
Publisher : ISBN : Book : Chapter :
Proceeding Title : Institution : Issuer : Number :