Exchange Rate and Investment in the Manufacturing Sector of Bangladesh

M. Habibur Rahman and M. Ismail Hossain
Additional contact information
M. Habibur Rahman: Lecturer, Department of Economics, Narayanganj Government Women’s College, Narayanganj, Bangladesh.
M. Ismail Hossain: Professor, Department of Economics, Jahang irnagar University, Savar, Dhaka, Bangladesh

Bangladesh Development Studies, 2003, vol. 29, issue 1-2, 111-124

Abstract: The study is an attempt to empirically examine the existence of long run equilibrium relationship between the real exchange rate and private manufacturing investment in Bangladesh. Appreciation (depreciation) of the real exchange rate has been found to have a negative (positive) impact on the level of private manufacturing investment both in the long and in the short run. In addition, gross domestic product is also found to have significant effect on investment. The short run dynamic model suggests stability in the equilibrium relationship.

Keywords: Exchange Rate; Investment; Manufacturing Sector; Bangladesh (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://bids.org.bd/uploads/publication/BDS/29/29-1&2/04_asadul%20Islam.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:badest:0447

Access Statistics for this article

Bangladesh Development Studies is currently edited by Dr. Binayak Sen

More articles in Bangladesh Development Studies from Bangladesh Institute of Development Studies (BIDS) E-17, Agargaon, Sher-E-Bangla Nagar, Dhaka 1207. Contact information at EDIRC.
Bibliographic data for series maintained by Meftaur Rahman, Cheif Publication Officer, BIDS ().