Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh

Shahjahan Ali; Khandaker Jahangir Alam; Md. Shafiul Islam

doi:doi:10.11648/j.ijsdr.20160203.11

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Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh

Shahjahan Ali, Khandaker Jahangir Alam, Md. Shafiul Islam

Received: 4 August 2016 Accepted: 1 September 2016 Published: 17 October 2016

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Abstract

This study is an attempt to study the empirical relationship among trade openness, industrial value added and economic growth in Bangladesh. Annual time series data set (1981 to 2015) are utilized to detect the connections among the indicators of interest. Unit root test was applied to determine the time series properties of the variables: Gross Domestic Product (GDP), export, import and industrial value added while Ordinary Least Squares (OLS) technique of estimation and Granger causality test were employed to find out direction of causality. The results from the econometric model indicate that imports have a negative relationship while exports positively influence economic growth. The industrial value added also has positive influence on economic growth. It is recommended that Bangladesh should engage in export promotion and import substitution with a view to strengthening the economy and consequently enhance the living standards of its population.

DOI	10.11648/j.ijsdr.20160203.11
Published in	International Journal of Sustainable Development Research (Volume 2, Issue 2, March 2016)
Page(s)	6-11
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Industrial Value Added, Trade Openness, Economic Growth, Bangladesh

References

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APA Style

Shahjahan Ali, Khandaker Jahangir Alam, Md. Shafiul Islam. (2016). Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh. International Journal of Sustainable Development Research, 2(2), 6-11. https://doi.org/10.11648/j.ijsdr.20160203.11

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ACS Style

Shahjahan Ali; Khandaker Jahangir Alam; Md. Shafiul Islam. Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh. Int. J. Sustain. Dev. Res. 2016, 2(2), 6-11. doi: 10.11648/j.ijsdr.20160203.11

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AMA Style

Shahjahan Ali, Khandaker Jahangir Alam, Md. Shafiul Islam. Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh. Int J Sustain Dev Res. 2016;2(2):6-11. doi: 10.11648/j.ijsdr.20160203.11

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@article{10.11648/j.ijsdr.20160203.11,
  author = {Shahjahan Ali and Khandaker Jahangir Alam and Md. Shafiul Islam},
  title = {Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh},
  journal = {International Journal of Sustainable Development Research},
  volume = {2},
  number = {2},
  pages = {6-11},
  doi = {10.11648/j.ijsdr.20160203.11},
  url = {https://doi.org/10.11648/j.ijsdr.20160203.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsdr.20160203.11},
  abstract = {This study is an attempt to study the empirical relationship among trade openness, industrial value added and economic growth in Bangladesh. Annual time series data set (1981 to 2015) are utilized to detect the connections among the indicators of interest. Unit root test was applied to determine the time series properties of the variables: Gross Domestic Product (GDP), export, import and industrial value added while Ordinary Least Squares (OLS) technique of estimation and Granger causality test were employed to find out direction of causality. The results from the econometric model indicate that imports have a negative relationship while exports positively influence economic growth. The industrial value added also has positive influence on economic growth. It is recommended that Bangladesh should engage in export promotion and import substitution with a view to strengthening the economy and consequently enhance the living standards of its population.},
 year = {2016}
}

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TY  - JOUR
T1  - Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh
AU  - Shahjahan Ali
AU  - Khandaker Jahangir Alam
AU  - Md. Shafiul Islam
Y1  - 2016/10/17
PY  - 2016
N1  - https://doi.org/10.11648/j.ijsdr.20160203.11
DO  - 10.11648/j.ijsdr.20160203.11
T2  - International Journal of Sustainable Development Research
JF  - International Journal of Sustainable Development Research
JO  - International Journal of Sustainable Development Research
SP  - 6
EP  - 11
PB  - Science Publishing Group
SN  - 2575-1832
UR  - https://doi.org/10.11648/j.ijsdr.20160203.11
AB  - This study is an attempt to study the empirical relationship among trade openness, industrial value added and economic growth in Bangladesh. Annual time series data set (1981 to 2015) are utilized to detect the connections among the indicators of interest. Unit root test was applied to determine the time series properties of the variables: Gross Domestic Product (GDP), export, import and industrial value added while Ordinary Least Squares (OLS) technique of estimation and Granger causality test were employed to find out direction of causality. The results from the econometric model indicate that imports have a negative relationship while exports positively influence economic growth. The industrial value added also has positive influence on economic growth. It is recommended that Bangladesh should engage in export promotion and import substitution with a view to strengthening the economy and consequently enhance the living standards of its population.
VL  - 2
IS  - 2
ER  -

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Author Information

Shahjahan Ali

Department of Economics, Begum Rokeya University, Rangpur, Bangladesh
Khandaker Jahangir Alam

Department of Economics, Begum Rokeya University, Rangpur, Bangladesh
Md. Shafiul Islam

Department of Economics, Begum Rokeya University, Rangpur, Bangladesh

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APA Style

Shahjahan Ali, Khandaker Jahangir Alam, Md. Shafiul Islam. (2016). Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh. International Journal of Sustainable Development Research, 2(2), 6-11. https://doi.org/10.11648/j.ijsdr.20160203.11

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ACS Style

Shahjahan Ali; Khandaker Jahangir Alam; Md. Shafiul Islam. Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh. Int. J. Sustain. Dev. Res. 2016, 2(2), 6-11. doi: 10.11648/j.ijsdr.20160203.11

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AMA Style

Shahjahan Ali, Khandaker Jahangir Alam, Md. Shafiul Islam. Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh. Int J Sustain Dev Res. 2016;2(2):6-11. doi: 10.11648/j.ijsdr.20160203.11

Copy | Download

@article{10.11648/j.ijsdr.20160203.11,
  author = {Shahjahan Ali and Khandaker Jahangir Alam and Md. Shafiul Islam},
  title = {Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh},
  journal = {International Journal of Sustainable Development Research},
  volume = {2},
  number = {2},
  pages = {6-11},
  doi = {10.11648/j.ijsdr.20160203.11},
  url = {https://doi.org/10.11648/j.ijsdr.20160203.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsdr.20160203.11},
  abstract = {This study is an attempt to study the empirical relationship among trade openness, industrial value added and economic growth in Bangladesh. Annual time series data set (1981 to 2015) are utilized to detect the connections among the indicators of interest. Unit root test was applied to determine the time series properties of the variables: Gross Domestic Product (GDP), export, import and industrial value added while Ordinary Least Squares (OLS) technique of estimation and Granger causality test were employed to find out direction of causality. The results from the econometric model indicate that imports have a negative relationship while exports positively influence economic growth. The industrial value added also has positive influence on economic growth. It is recommended that Bangladesh should engage in export promotion and import substitution with a view to strengthening the economy and consequently enhance the living standards of its population.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Effects of Trade Openness and Industrial Value Added on Economic Growth in Bangladesh
AU  - Shahjahan Ali
AU  - Khandaker Jahangir Alam
AU  - Md. Shafiul Islam
Y1  - 2016/10/17
PY  - 2016
N1  - https://doi.org/10.11648/j.ijsdr.20160203.11
DO  - 10.11648/j.ijsdr.20160203.11
T2  - International Journal of Sustainable Development Research
JF  - International Journal of Sustainable Development Research
JO  - International Journal of Sustainable Development Research
SP  - 6
EP  - 11
PB  - Science Publishing Group
SN  - 2575-1832
UR  - https://doi.org/10.11648/j.ijsdr.20160203.11
AB  - This study is an attempt to study the empirical relationship among trade openness, industrial value added and economic growth in Bangladesh. Annual time series data set (1981 to 2015) are utilized to detect the connections among the indicators of interest. Unit root test was applied to determine the time series properties of the variables: Gross Domestic Product (GDP), export, import and industrial value added while Ordinary Least Squares (OLS) technique of estimation and Granger causality test were employed to find out direction of causality. The results from the econometric model indicate that imports have a negative relationship while exports positively influence economic growth. The industrial value added also has positive influence on economic growth. It is recommended that Bangladesh should engage in export promotion and import substitution with a view to strengthening the economy and consequently enhance the living standards of its population.
VL  - 2
IS  - 2
ER  -

Copy | Download