Macroeconomic Stability in Bangladesh: Unraveling the Nexus between Exchange Rate, Inflation, and Export Dynamics through Nonlinear Modeling

A. H. M. Shahriar, Al Amin Biswas, Nishat Rumaly, Md. Johir Rayhan, Mohammad Jahangir Alam and Uttam Golder
Additional contact information
A. H. M. Shahriar: Department of Finance and Banking, Jashore University of Science and Technology, Bangladesh
Al Amin Biswas: Department of Finance and Banking, Jashore University of Science and Technology, Bangladesh
Nishat Rumaly: Department of Finance and Banking, Jashore University of Science and Technology, Bangladesh
Md. Johir Rayhan: Department of Banking and Insurance, University of Dhaka, Bangladesh
Mohammad Jahangir Alam: Department of Accounting and Information Systems, Jashore University of Science and Technology, Bangladesh
Uttam Golder: Department of Finance and Banking, Jashore University of Science and Technology, Bangladesh

International Journal of Economics and Financial Issues, 2024, vol. 14, issue 6, 174-181

Abstract: This study explores the effects of exchange rate and inflation on the export of goods and services in Bangladesh. Applying Nonlinear Autoregressive Distributed Lag (NARDL) model and using data from 1987 to 2021, in the case of a negative shock, this study finds a significant negative long-run association of exchange rate and inflation with export. Besides, in the case of positive shock, we see a meaningful positive relationship between inflation and exports. Following the findings, this study suggests exchange rate and inflation to ensure stability in Bangladesh’s economy through the issuance of new policies considering the reduction of inflationary pressures, formulation of contractionary monetary policy, recapping exchange-traded funds, and modification of exchange rate determination.

Keywords: Export; Inflation; Exchange Rate; NARDL; Bangladesh (search for similar items in EconPapers)
JEL-codes: E10 E31 E43 F3 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/16968/8291 (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/16968 (text/html)

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:eco:journ1:2024-06-19

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk (ilhanozturk@yahoo.com).